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After Dow nosedives, Trump declares "the Fed has gone crazy"

Dow tumbles over 800 points
Dow tumbles more than 800 points over interest rate worries 04:16

President Trump declared that the Federal Reserve "has gone crazy," in response to a question about about the markets after the Dow closed more than 830 points down Wednesday.

Mr. Trump, asked by reporters in Pennsylvania if he's worried about the sell-off, said he's not and launched into his frustrations with the Fed. On Tuesday, the president said he doesn't like the Fed's decision to continue to hike interest rates, something he's said before. Higher interest rates are one of the multiple factors being blamed for the drop. 

"No, I think the Fed is making a mistake. They're so tight," Mr. Trump said. "I think the Fed has gone crazy. So you could 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."

Pressed further on whether he's concerned about stocks, Mr. Trump suggested that the drop was to be expected.

"No, I think it's good," the president told reporters Wednesday. "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." 

Mr. Trump often points to the stock market in touting the economic successes of his administration. But in instances when stocks take a turn for the worse, he tends to look on the positive side. 

White House press secretary Sarah Sanders, in response to the Dow's drop Wednesday, highlighted the jobs figures and tax cuts under Mr. Trump's tenure. 

"The fundamentals and future of the U.S. economy remain incredibly strong," Sanders said in a statement. "Unemployment is at a fifty year low, taxes for families and businesses have been cut, regulations and red tape have been slashed, paychecks are getting fatter, consumer and small business confidence are setting records, and farmers, ranchers and manufacturers are empowered by better trade deals. President Trump's economic policies are the reasons for these historic successes and they have created a solid base for continued growth." 

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