'The Fed has gone crazy': Trump rails against Federal Reserve over rate hikes amid market plunge

Drew Angerer/Getty ImagesPresident Donald Trump.
  • President Donald Trump said he thought “the Fed has gone crazy” amid recent interest-rate hikes.
  • Trump’s statement came after stocks plunged Wednesday.
  • The US Federal Reserve is expected to keep raising interest rates into 2019.

After stocks plunged on Wednesday, President Donald Trump signalled his anxiety about the Federal Reserve’s plan to keep raising interest rates into 2019.

“I think the Fed is making a mistake,” Trump told reporters after landing in Erie, Pennsylvania, for a campaign rally on Wednesday night. “They are so tight. I think the Fed has gone crazy.”

With the Nasdaq Composite index and the Dow Jones industrial average having fallen by more than 3% each, Trump said “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 added.

The Federal Reserve has already increased interest rates three times in 2018 and eight times since the global financial crisis. It is expected to raise rates once more this year and at least three times in 2019, up from the two hikes it forecast previously.

Trump has criticised the Federal Reserve for its interest-rate hikes and said it did not “have to go as fast.” His criticism breaks a longtime political tradition. Presidents normally do not publicly agitate over the Fed’s moves, hoping to avoid the appearance of improperly influencing markets.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.