As US stocks slump, Donald Trump blames ‘crazy’ Fed and traders urge against panic
More than three per cent was slashed from major indices, with the S&P 500 and Dow falling the most since February and the Nasdaq 100 having its worst day in seven years
Wall Street stocks plummeted on Wednesday amid worries about surging US interest rates and the impact of trade disputes, as President Donald Trump blamed the Federal Reserve, saying it had “gone crazy”, and traders said there was no reason to panic.
US shares suffered a broad-based sell-off that slashed more than three per cent from major indices, with the S&P 500 and Dow falling the most since February and the Nasdaq 100 having its worst day in seven years.
“I think the Fed is making a mistake. It’s so tight. I think the Fed has gone crazy,” Trump told reporters shortly after markets closed on Wednesday. He has frequently criticised the US central bank for gradually raising interest rates.
Trump has repeatedly touted Wall Street records as proof of the success of his economic programme, including his confrontational trade strategy. But he downplayed the first major drop in months on Wednesday, saying, “it’s a correction that we’ve been waiting for a long time.”
