Donald Trump blames ‘out of control’ US Fed for stock market sell-off

President Donald Trump said he won’t fire US Federal Reserve chairman Jerome Powell but blamed an “out of control” US central bank for the worst stock market sell-off since February.

President Trump also told reporters in the Oval Office that he knows monetary policy better than the Fed’s leaders and continued criticising them for interest-rate increases.

“The Fed is out of control,” President Trump said. “I think what they’re doing is wrong.”

The president added that the Fed’s interest rate increases are “not necessary in my opinion and I think I know about it better than they do.”

His criticisms mark a stunning departure from the practices of his recent predecessors.

Presidents for more than two decades had avoided public comments on the Fed’s interest-rate policies as a way of demonstrating respect for the institution’s independence.

For a president who has frequently invoked rising stock prices as affirmation for his economic policies, criticism of the Fed’s monetary policies lays ground for shifting blame elsewhere if the market slide continues. He is escalating his attacks on the Fed with less than a month to go before elections that will determine whether Republicans maintain control of Congress.

The current Federal Funds’ target rate range of 2% to 2.25% is low by historical standards. With the consumer price index up 2.3% over the past year, that amounts to an interest rate of zero in real terms.

The president has repeatedly criticised the Fed over the past 24 hours as markets plunged.

- Bloomberg

More on this topic

Trump calls for 5G and even 6G technology ‘as soon as possible’

US will be sorry that it can admit no wrong

Judge orders Trump confidant Roger Stone to court over Instagram post

US states sue Trump over emergency wall declaration

More in this Section

UK's Serious Fraud Office closes probes into Rolls-Royce and GlaxoSmithKline

MyTaxi app to change name for second time two years

UCC student launches Executive Summit, top execs get on board

Here are this week's six business movers


Live music review: Chvrches play a blinder at the Olympia

7 ways to manage toddler tantrums, according to an expert

Ask Audrey: 'I'm pretending to be from Monkstown, but I'm really just a wan from Turners Cross'

Six questions from a first-time viewer of MasterChef

More From The Irish Examiner