"I mean I don't know what their problem is but they are raising interest rates and it's ridiculous", Trump said late Wednesday night. "Actually, it's a correction that we've been waiting for, for a long time", Trump said. "I think the Fed has gone insane", he charged.
Trump's public criticism of the Federal Reserve, whose chairman, Jerome Powell, Trump appointed, is a sharp departure from his recent predecessors.
"I'm paying interest at a high rate because of our Fed", he added, referring to the cost of servicing the United States deficit.
Trump on Thursday also indicated that the Fed's policies were harming him personally.
Trump previously criticized the Fed for allowing too much money into the economy in several tweets from 2011, before he became the president.
US President Donald Trump warned on Thursday there is "a lot more" he could do to hurt China's economy.
Trump has slapped tariffs on $250 billion in Chinese goods this year, and Beijing has retaliated with levies $110 billion of American products. No, that wasn't it. "The Fed is going wild".
The Tel Aviv Stock Exchange was down more than two percent, Shanghai plummeted almost 5% while Tokyo and Hong Kong both shed around 4%, as investors fretted about surging interest rates and the ongoing US-China trade war.
"I'm not thrilled because we go up", he explained, "and every time we go up they want to raise rates again, and I don't really - I am not happy about it, but at the same time I'm letting them do what they feel is best".
Among investors in federal funds futures, continued Fed rate hikes remained a solid bet, with a December increase assigned a 78 percent probability - down only 3 percentage points from before Wednesday's market turmoil and Trump's comments.
"The fundamentals and future of the USA economy remain incredibly strong", Sanders said in a statement.
On Wednesday, the Dow fell 831 points, or 3.1 percent, to 25,598.
All 30 Dow stocks were in the red, sending the index below 26,000 points for the first time in a month. However, during his last press conference following the Federal Open Market Committee's most recent two-day meeting in September, Powell said he and his colleagues were focused on carrying out the bank's dual mandate of achieving maximum employment and stable prices. The S&P 500 sank 2.3 percent, marking its sixth day of decline.
Meanwhile, Europe's main stock markets slid by around 1.5% at the start of trading today following heavier falls across Asia and on Wall Street overnight. The Nasdaq dropped more than 4% in the worst percentage decline since June 2016.