President Trump took a shot at the Federal Reserve on Wednesday after the Dow Jones Industrial Average fell 831 points, its worst loss in eight months.
As he landed in Erie, Penn., ahead of a 7 p.m. rally there, Trump answered several questions from reporters.
When asked if he was concerned about the market sell-off, Trump replied: “No, I think the Fed is making a mistake,” according to a pool report.
He continued: “They’re so tight. I think Fed has gone crazy. 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 margin. But I think the Fed has gone crazy.”
When asked about the stock plunge, Trump said, “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, okay?”
Stocks have slumped over the last week as a combination of strong economic data and positive commentary from Federal Reserve leaders sent bond yields rocketing higher as investors bet that interest rates will keep rising. Big moves in interest rates tend to unsettle investors, and they can also push them to sell stocks and buy bonds instead.
Meanwhile, Trump also said he decided to go ahead with tonight’s rally amid the devastation caused by Hurricane Michael in Florida because “it would be very unfair” to his supporters to cancel.
“We have thousands of people lined up, so we wanted to make this stop,” he said, according to a pool report. “You have thousands of people who started coming last night. So we’re going to do that and we have a lot of happy people. . . . But it would have been very, very unfair to thousands of people.”
He said that in the meantime, “we have it very well covered in Florida.”Material from the Associated Press was used in this report.