It's bad enough for investors when every single stock on the dial turns red
and all three Wall Street indices see their biggest one-day losses in months,
but it's even worse when the US president attacks the country's central bank.
"I think the FED is making a mistake- you're so tight. I think the FED has gone crazy."
Last month the US Federal Reserve raised the benchmark interest rate
for the third time this year and signaled it would tighten monetary policy further.
A series of economic data in recent days raised
expectations for another rate hike in December,
pushing borrowing costs up.
The volatility index or the fear gauge has nearly doubled in the past week.
It's now at the highest level in six months.
Inflation fears are not the only cause.
The market rout comes just after the IMF warned the ongoing trade tensions
would harm global economic growth.
"I think the writing is on the wall: the feds are going to keep interest rates moving higher
and I think this is what's causing the bulk of the ruckus,
but you know those simmering tensions between the US and China
certainly adding quite a lot of flavor to the mix."
Donald Trump also called the stock market rout
a long awaited correction.
US stocks have been at all-time highs since the summer.
While they aren't yet in correction territory,
meaning a decline of at least 10 percent from a recent peak,
shares could still have further to fall.
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