I don't like Fed raising interest rates so quickly, says Trump

The Federal Reserve is not pleasing President Trump with its policy on interest rate increases

The Federal Reserve is not pleasing President Trump with its policy on interest rate increases

Reporters asked the president as he deplaned in Erie, Pennsylvania, if he was concerned about Wednesday's market selloff. The Dow lost more than 550 points in afternoon trading.

Strong economic data and a positive outlook from Fed officials have led to a sell-off in US Treasury bonds, particularly longer-term ones, sparking concerns about even higher interest rates.

In fact it is his policies that are behind the changes: tax cuts and spending policies are expected to juice the economy, adding to the Fed's justification to raise interest rates, while trade conflicts raise costs for companies, which could hit the bottom line in quarterly earnings - something analysts said helped prompt Wednesday's sell-off. "It's all about investors rethinking their exposure to stocks."Many of the biggest United States names fell hard in Wednesday's session, with Apple, Boeing and Facebook all slumping more than four percent and Amazon, Nike and Microsoft shedding more than five percent".

The broad USA stock market sell-off Wednesday took the S&P 500 to the lowest in three months, the Dow Jones Industrial Average plunged as much as 836 points and the Nasdaq 100 Index tumbled more than 4 percent for its worst day in seven years.

Investors are leaning into safer stocks with steady dividends - utilities and consumer staples - and pulling out of the higher-paying, higher-risk stocks as other guideposts of growth, like the communication sector, tumbled.

"It's probably healthy. This will pass and the USA economy remains strong". Unemployment fell last month to a 49-year low of 3.7 per cent. President Trump blamed the Federal Reserve - and his appointee Jerome H. Powell - for the big drop Wednesday. It was at just 3.05 percent early last week.

The current benchmark interest rate is 2 to 2.25 percent.

Stocks have been under pressure since the yield on 10-year US Treasury bonds jumped above 3% last week, a sudden move that raised fears of an overheating economy, speeding inflation and more aggressive Federal Reserve interest rate increases. "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".

Ivan Feinseth, Chief Investment Officer at Tigress Financial Partners, said that although the sell-off caught him off-guard, he thought many investors were unduly frightened by the prospect of rising rates. "But I really disagree with what the Fed is doing, okay?"

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