Japanese stocks plunged by more than three percent Thursday following the worst session on Wall Street for months, as US President Donald Trump said the Federal Reserve had "gone crazy" with plans for higher interest rates.
"Actually it's a correction that we've been waiting for for a long time, but I really disagree with what the Fed is doing", Trump told reporters before a political rally in Pennsylvania.
"I don't think there was any new news that came out of the Fed today that wasn't there beforehand", Mnuchin was quoted saying.
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.
Trump has said he likes low interest rates, in part because of his background in real estate.
Donald Trump's use of the word correction to describe the sell-off could be significant.
Technology and internet-based companies are known for their high profit margins, and many have reported explosive growth in recent years, with corresponding gains in their stock prices. Economists generally agree that in order to prevent runaway inflation, the Federal Reserve can raise interest rates to restrain the money supply.
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Less than a day after saying he was "concerned" for Khashoggi, Trump said he would talk with Saudi officials "at some point ". The Saudi government has denied the allegation. "We have jobs, we have a lot of things happening in this country".
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Lagarde said central bank rate increases such as those by the policy-setting US Federal Reserve were justified by fundamentals. Lagarde told reporters the Fed's rate hikes were justified by fundamentals.
The central bank's preferred measure of inflation is roughly at policy makers' 2 percent objective, and Powell said last week that "the outlook of forecasters inside and outside the Fed is for more of the same". "The Fed is going loco and there is no reason for them to do it and I'm not happy about it".
"The Fed continues to flood the market with United States dollars", he said in one tweet.
The steep drop in Japan followed a decline on Wall Street of almost 830 points, the biggest fall since February, amid Trump's latest criticism of the Federal Reserve, the USA central bank.
"The Fed's reckless policies of low interest and flooding the market with dollars needs to be stopped or we will face record inflation", he said in the other. "It's probably healthy. This will pass and the U.S. economy remains strong".
"The fundamentals of the United States economy continue to be extremely strong, I think that's why the stock market has performed as well as it has". "No, I think the Fed is making a mistake".
Tech and luxury stocks have been among those to feel the worst pain in the sell-off.
In a sign of how much animosity Trump now holds toward the central bank, Moore said he believes Trump regrets appointing Powell to the position. The problem I have is with the Fed.