"It is a correction that I think it is caused by the Federal Reserve with interest rates", Mr Trump told reporters at the White House. "I think the Fed has gone insane". Nope, it's the insane ol' Fed under that chair Jerome Powell. Critics have expressed worry that the president's attacks threaten the Fed's ability to operate free of political pressure.
US President Donald Trump speaks during a briefing on Hurricane Michael in the Oval Office of the White House in Washington, DC, October 10, 2018.
"I don't think any decision has been made with regard to a meeting", Mnuchin said when asked if the Chinese side had offered enough trade concessions to justify a meeting. "But I think the Fed has gone insane", he went on.
The strangest anomaly to this governmental economic interference is the fact that the Fed actually has artificially increased inflation. 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.
From its beginning, the Fed was created to insulate it from political pressures.
"As concerns increase over higher interest rates dampening growth, investors are evolving their trading strategies accordingly".
There are multiple ways that the Federal Reserve can manipulate the economy through interest rates. That issue has never arisen in regard to an individual Fed official.
United Kingdom house builders have also plunged on the open after the latest RIC's survey (Royal Institute of Chartered Surveyors) showed that London house prices could remain under pressure for quite some time.
With the Fed slowly unwinding quantitative easing - as it should be doing, since the financial crisis is long past - it makes sense that long-term Treasury securities are breaking through their artificially low yield levels. The higher the discount rate, the more expensive it is for the bank to borrow, and therefore, the higher the rate will be when the bank loans money to a business or to an individual to make a larger purchase such as a auto or a house.
It is time for President Donald Trump and his administration to change the rules of the game. Bush blamed Alan Greenspan's slowness in cutting interest rates for his failed run for a second term in 1992. For one thing, it was yet another sign of more Fed hikes to come.
The Treasury Department is due to release its semi-annual Exchange Rate Report this week amid reports that it will not name China as a currency manipulator, despite increasingly contentious exchanges between officials of the world's two largest economies. One way is the "discount rate" that the Fed charges member banks.
Trump's remarks to reporters were in direct response to questions about the stock market drop. "I think I know about it", he said.
Unusual thing about administration is they crave tax cuts but at the same time they are rising the taxes through tariffs. "Far too rigid, far too fast", Trump said. "Today they went down to those testing areas and failed", Cashin said. Rather, he has stressed that the central bank handles its job without regard to politics.
"I'm paying interest at a high rate because of our Fed", he added, referring to the cost of servicing the U.S. deficit.
He also sidestepped criticism of the Federal Reserve's monetary policy.