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Trump says the Federal Reserve has 'gone crazy' by continuing to raise interest rates

CNBC logo CNBC 10/10/2018
Donald Trump wearing a suit and tie: President Trump Briefed On Hurricane Michael By Secretary Of Homeland Security Nielsen And FEMA Chief Long In Oval Office© Provided by CNBC LLC President Trump Briefed On Hurricane Michael By Secretary Of Homeland Security Nielsen And FEMA Chief Long In Oval Office

President Donald Trump knocked the Federal Reserve for continuing to raise interest rates despite some recent market turbulence.

"I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy," the president said after walking off Air Force One in Erie, Pennsylvania for a rally.

Fears about rapidly rising rates helped cause the Dow Jones industrial average to drop more than 800 points 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," the President added.

The Fed has raised interest rates three times this year and is largely expected to hike once more before year-end.

The most recent September rate hike drew criticism from Trump at the time, who said he was "worried about the fact that they seem to like raising interest rates, we can do other things with the money," he said.

Market expectations for a December rate hike were at 76.3 percent, according to the CME Group's FedWatch tool.

Trump's comments on the central bank Wednesday came a day after he said he did not like what they were doing in terms of monetary policy. On Tuesday, Trump noted: "We don't have to go as fast." He also said he did not want the economy to slow "even a little bit" when there are no signs of inflation.

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