THE STORIES BEHIND THE HEADLINES

Abu Dhabi

London

New York

Tuesday 20th March 2018

Global Stock Markets Tumble as Trump Blames US Central Bank

Business

7Dnews London

Thu, 11 Oct 2018 18:22 GMT

Stocks fell across the globe following Federal Reserve's surprise decision to raise interest rates that President Donald Trump continued to criticise and called it the result of a "very rushed" monetary policy.

The US stock market seemed to be catching up at the opening on Thursday. The Dow Jones Industrial Average was down 0.21% at around 13.50 GMT, and the Nasdaq Composite Index improved by 0.05%. 

The Hong Kong stock exchange closed down at 3.54%, while Tokyo at3.89%, as for the Shanghai Stock Exchange, it fell more than 5% and Shenzhen was down by 6.45%. 

Investors are particularly concerned about the tightening of the Federal Reserve policy, which has begun to raise interest rates after the markets have been flooded with low-yielding funds over the years.

Trump reiterated Thursday his criticism of the US central bank, telling Fox News that "I think they are making a big mistake" and "acting too aggressively".

The comments came after his unprecedented criticism of the Federal Reserve, who called it on Wednesday "crazy" and confirmed that raising interest rates caused the stock market to crash. The Dow lost more than 800 points on Wednesday, its worst performance since February.

"We know the Federal Reserve is an independent body, and the president does not dictate his policy to the Fed" White House chief economic adviser Larry Kodlo said Thursday.


US & Canada