Trump says Chinese 'lived too well for too long'

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"But it won't be, "you shouldn't raise the interest rate" and they don't raise the interest rate".

The broad-based S&P 500 also dropped 2.1 percent to 2,728.26, while the tech-rich Nasdaq Composite Index fell 1.2 percent to 7,330.26. Even at the projected 3.25 percent in the Funds at the end of 2019, the potential reduction is well below the peaks of 550 and 525 basis points at the beginning of the last two rate reduction cycles.

You would expect that damping down economic growth would draw a negative reaction from US markets because it signals an impending economic contraction.

In Asia stock markets braced themselves for another day of losses. French markets and Germany markets lost over 2 per cent of its value while in the United Kingdom, the loss was 1.3 per cent.

Japan's Nikkei and the Hang Seng in Hong Kong were down by up to 4%. In Paris, shares in Kering fell almost 10 percent, LVMH over seven percent and Hermes around five percent. "The idea of the US sneezing and the rest of the world catching a cold isn't a worry when the American economy has such rosy cheeks".

Bond yields, which have spiked over the last week, slid after the Labor Department said consumer prices grew only slightly in September.

Mr Trump said: "I like to see low interest rates". And there are lingering concerns about the unresolved trade dispute between the USA and China.

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Hundreds of companies are due to provide investors with updated earnings forecasts in coming weeks.

President Donald Trump renewed his attacks on the United States central bank on Thursday, saying it was "out of control" in raising interest rates but that he had no plans to dismiss Federal Reserve Chairman Jerome Powell.

President Donald Trump on Thursday renewed his attacks on the U.S. central bank but said he had no plans to dismiss Federal Reserve Chairman Jerome Powell.

'We know the Fed is independent. He didn't say anything remotely like that, ' he said on CNBC.

They include the U.S. trade war with China and its potential impact on global growth, while rising bond yields have diverted attention from equities - stocks - which have been offering the most attractive returns for years because central bank stimulus had flooded markets with cheap money.

The markets have been on a historic climb - with the Dow and S&P each notching dozens of new highs since 2016 - buoyed by a strong USA economy and solid corporate earnings.

Speaking at the IMF and World Bank annual meetings in Indonesia (as was Frenkel), IMF managing director Christine Lagarde said she "would not associate Jay Powell with craziness", and Powell's counterpart at the Bank of England, Mark Carney, said Powell was "an individual that really understands the plumbing of the US and global financial systems".

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But the Fed has repeatedly explained the justification behind the three interest rate increases this year, and Trump's own policies are contributing to the case for the moves, including steep tax cuts, increased deficit spending, and the trade conflict with China.

Carney also praised Fed Chairman Jerome Powell's technocratic expertise.

"I think the Fed is making a mistake", Trump said to reporters after landing in Erie, Pennsylvania, for a campaign rally on Wednesday.

Ward McCarthy, chief financial economist at Jefferies LLC in NY, said Trump's comments wouldn't influence Fed policy making.

"The Fed is going wild", Trump told Fox News on Wednesday night.

In a sign of how much animosity Trump now holds toward the central bank, Moore said he believes Trump regrets appointing Powell to the position.

But both indexes remain a full 10 percent higher than following similar dips in February and March.

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