President Donald Trump on Thursday escalated his attack on the Federal Reserve's interest rate increases, asserting that "the Fed is out of control" and blaming it for this week's plunge in stock prices.
"I like low interest rates", Trump said.
"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 don't think the Fed is on the wrong path.
In fact it is largely his policies that are behind the changes: tax cuts and increased government spending are expected to juice the economy, adding to the Fed's justification to raise interest rates. The Fed is an independent body and presidents in recent decades have avoided commenting publicly on its actions.
Trump selected Powell, a Republican who served in the George H.W. Bush administration, to lead the Fed over a number of other candidates - including several who favoured even more aggressive rate hikes. "I think our nominees have been absolutely first rate".
"The Fed has gone insane", he told reporters on Wednesday as he arrived in Pennsylvania for a campaign rally.
Trump was briefed on the market turmoil earlier in the day, a White House official said.
A news report on Friday that Trump and Xi would meet at the G20 caused a sharp rebound in United States and global stock markets on the hopes that a resolution of the escalating trade dispute might be possible.
Mr Summers cautioned Mr Trump against criticising the Fed, saying it might have the opposite effect.
The yield on 10-year U.S. Treasury bonds reached a seven-year high this week of 3.25 percent (it receded some Wednesday as stocks dropped), up from 2.82 percent in August. Investors might, for example, question whether the Fed would feel free to keep raising rates, if it felt it necessary to control inflation.
Analysts said third-quarter earnings could reveal the extent to which US President Donald Trump's trade conflicts might have dented profits.
Rates took their latest spike higher amid a report Friday which showed the lowest unemployment rate in 49 years, along with rising wages.
For instance, the September U.S.jobs report, which came out on October 5, found the unemployment rate had dropped to 3.7 per cent, a almost 50-year low; wage growth also strengthened.
The last time average mortgage rates were near the 5 percent level was in April 2011.
Stocks are in the midst of a scary October slump, sliding sharply because investors are anxious about rising interest rates.
During an event earlier Wednesday amid the sell-off, Trump and his top economic adviser, Larry Kudlow, said they believed the US economy was strong.
As Catherine Rampell noted in the Washington Post , "There's good reason to safeguard central bank independence: It's that we don't want to turn into Venezuela". By law a president can only fire a Fed chair for cause, not a disagreement in policy. I don't know what their problem is.
"The president has been clear", Mnuchin said in an interview with CNBC.
So, no, the rout wasn't caused by growing worry over Trump's trade wars, which the International Monetary Fund cited in cutting its outlook for global growth on Tuesday.
Mr Trump is correct in saying that rising interest rates tend to strengthen the USA dollar, as investors return funds to the United States in search of higher returns and safer investments. "Far too rigid, far too fast", Trump said.