Trump accuses the Fed's "loco" of causing a stock market slide

President TrumpDonald John TrumpTrump reiterates his claim without proof that paid demonstrators disrupted his rallies. Five points to remember from the last debate in the Tennessee Senate. Trump Confront Dems at the Pennsylvania Rally as Hurricane Michael Strikes Florida MORE On Wednesday night, the Federal Reserve was accused by the Federal Reserve of having caused a strong stock sale earlier in the day, claiming that the central bank was "raging" with a "ridiculous" series of hikes interest rate.

Trump announced on Wednesday that the Fed "was preparing for bankruptcy" and blamed the central bank for making US stocks their worst day since February.

The Dow Jones industrial average fell 831 points on Wednesday, losing 3.2% on the day, while the Nasdaq composite and the S & P 500 lost 4% and 3.3%.

"The problem in my opinion is [Treasury bonds] and the Fed, " Trump told Fox News. "The Fed is going and there is no reason for it to do it and I'm not happy about that."

Trump explicitly blaming the Fed for declining shares is a major escalation of its frequent criticism of the central bank. President told reporters earlier Wednesday that the Fed "went crazy" with rate hikes, but said the previous stock market crash was "in fact … a correction we had been waiting for a long time".

Trump has been criticizing the Fed and President Jerome Powell since July for raising interest rates. The Fed has raised rates eight times since 2015 and six times since Trump took office, seeking to bring monetary policy back to neutral levels.

Most Republicans and right-wing economists support the Fed's efforts to raise interest rates before inflation declines. But Trump dismissed worries about rising prices and said the Fed should keep rates low to help boost an already strong economy.

There is a broad bipartisan consensus among economists that the US economy could overheat if the Fed does not gradually lower interest rates to neutrality. The Fed also risks stifling economic growth if it raises rates too quickly.

"The problem I have is with the Fed," Trump said Wednesday night, "The Fed is going wild, I mean, I do not see how their problem is that they're raising interest rates and that's ridiculous.

During a phone interview Thursday morning on "Fox & Friends," Trump continued his criticism, saying the Fed "was getting a little too cute".

"It's ridiculous what they do," he said.

"When I took over this economy, it was ready to collapse," he added.

The Fed's higher interest rates increase borrowing costs, which reduces corporate profit margins and deters investors from holding volatile, high-growth stocks. Traders pulled back on stocks on Wednesday due to concerns over rising interest rates, parking investments in Treasury bonds and other assets considered safe havens.

–This report was updated at 8:58.