After President Donald Trump warned that the Federal Reserve is "going loco" and "making a big mistake", his chief economic adviser Larry Kudlow stepped in front of reporters at the White House and insisted the President wasn't "calling out the Fed".
"It creates currency problems, inflation problems, interest rate problems and maybe recession problems in other countries and therefore, the flow of funds that was coming to the United States stops and I think that's what's happening right now", Bove said.
But he's also calling the drop "a correction we've been waiting for for a long time".
The Dow Jones Industrial Average sank 831 points Wednesday, an approximately 3.15 percent drop.
The President said the markets were way up over what they were. And the higher that "bond vigilantes" expect inflation to be, the higher the interest rate they will demand to offset erosion of the money they invest in long-term securities.
The December tax cuts that Mr Trump championed, as well as the increased federal spending in this year's budget, are expected to do what the president intended by juicing the economy - but when unemployment was already low and the economy growing at a good rate.
"Of the many qualities of Jerome Powell is he's an individual who really understands the plumbing of the USA and the global financial system", Carney said.
It was at least the third time that the president has criticised Fed policy since taking office.
When asked about the steep fall of the stock market, Trump said he was not anxious about it.
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"It's all about investors rethinking their exposure to stocks."Many of the biggest USA names fell hard in Wednesday's session, with Apple, Boeing and Facebook all slumping more than four percent and Amazon, Nike and Microsoft shedding more than five percent".
"There are a number of worries for investors right now, from the pace of rising bond yields and the impact on investor sentiment, to Italy's populist coalition playing a game of chicken with the European Commission, stalling Brexit negotiations and the ongoing trade conflict between the U.S. and China", said Craig Erlam, senior market analyst at Oanda trading group.
Similarly, every time the Fed raises rates, the cost of interest on our debt and the cost of running the USA government goes up dramatically thus reducing available money to spend on infrastructure and salaries of government employees. He has repeatedly criticized the central bank for raising interest rates this year, decisions aimed at preventing the economy from overheating.
"I'm not going to fire him", Trump said of Powell, a Trump appointee who legally can only be fired for cause. "But I really disagree with what the fed is doing. OK?" "I think that's the reason the stock market continues to perform well..."
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.
"Interest rates are still accommodative, but we're gradually moving to a place where they will be neutral..." Meanwhile, yields in Europe remain suppressed: the European Central Bank is planning to stop its bond-buying program by the end of this year, but it's not going to start unwinding its $3.8-trillion bond holdings anytime soon.
Strong economic data and a positive outlook from Fed officials have led to a sell-off in US Treasury bonds, particularly longer-term ones, sparking concerns about even higher interest rates.
In short, it's hard to see in Powell's speech many signs the Fed is poised to deviate from its steady course toward normalization so as to crush inflation at any sign of labour market tightening or rising wages.