'The Fed has gone crazy': Trump points finger for Wall Street tumble

President Trump spoke with reporters after arriving at Erie International Airport for a campaign rally at Erie Insurance Arena on Wednesday

President Trump spoke with reporters after arriving at Erie International Airport for a campaign rally at Erie Insurance Arena on Wednesday

With significant drops in the Dow Jones Industrial Average, S&P 500, and broad-based stock market indexes, President Trump said markets are in a "correction", and decried the Federal Reserve's recent rises in interest rates and signals for more to come. "So you can say that well that's a lot of safety actually, and it is a lot of safety, and it gives you a lot of margins, but I think the Fed has gone insane". The Fed has "gone insane", he said.

Trump reportedly made the remarks after stepping off Air Force One in Erie, Pennsylvania, where he is due to hold a "Make America Great Again" rally. The Fed is doing what it thinks is necessary but I don't like what they're doing because we have inflation really checked, and we have a lot of good things happening. Powell said last week he expects to stick with the current path of gradual interest-rate hikes while monitoring risks in the economy. "It's probably healthy. This will pass and the USA economy remains strong".

Earlier on Tuesday, White House economist Kevin Hassett said the administration respects the Fed's independence and pointed to Trump's nominees to the central bank as evidence of its non-partisan approach to the setting of monetary policy.

The Fed has been raising interest rates gradually since December 2015, and last month lifted its target for short-term rates to a range of 2 percent to 2.25 percent, responding to an economy that has been growing at a pace well above what Fed officials believe is sustainable.