U.S. President Donald Trump launched a second day of criticism against the Federal Reserve on Thursday, calling its interest rate increases a "ridiculous" policy that was making it more expensive for his administration to finance its escalating deficits.
"The fed is going loco and there's no reason for them to do it and I'm not happy about it", he added.
"Actually it's a correction that we've been waiting for a long time, but I really disagree with what the Fed is doing", Trump told reporters before a political rally in Pennsylvania.
"He is an individual that really understands the plumbing of the USA and global financial systems and one example is the reforms that are going underway on Libor for which he is one of the main sponsors", said Carney.
The Fed has less control over longer-term interest rates, which move mostly on expectations for future economic growth and inflation.
The breach of norms is not surprising for a real-estate-developer and reality-star-turned-president who has cheered as Wall Street has soared to new heights this year, hitting repeated records, and used that as proof his economic policies were working. "They are going to do what they are going to do".
But in August, Trump said he was "not thrilled" with Powell, though he took his criticism much further on Wednesday when he said the Fed was "crazy".
US presidents have rarely criticized the Fed in recent decades because its independence has been seen as important for economic stability. US stocks opened lower on Thursday but seesawed between losses of as much as a percentage point and small gains.
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Mnuchin said Fed Chairman Jay Powell was doing a good job. In a late night phone call Wednesday with Fox News, Trump complained: "The Fed is going wild".
Now, if you discount the trade tension/global slowdown theory for this week's stock selloff - and I wouldn't do that, but let's say you did - then you've got to think that the market is fearing that the Fed will respond to inflationary signals with more hikes than investors previously expected, maybe enough to hurt corporate profits, or dim the US economy into recession, or at least shift capital flows into bond markets at the expense of equities. "The problem in my opinion is Treasuries and the Fed". Powell said last week he expects to stick with the current path of gradual interest-rate hikes while monitoring risks in the economy.
In recent memory, no president has been so openly critical of the central bank.
The turmoil on stock markets came after the International Monetary Fund slashed its global growth forecast on Monday on worries over trade wars and weakness in emerging markets.
At the meetings in Bali, IMF managing director Christine Lagarde said she "would not associate" Jerome Powell "with craziness".
The central bank had raised the benchmark lending rate, which affects everything from mortgages to auto loans to bond yields, just twice before Mr Trump took office in January 2017, after a campaign in which he criticized the institution for allegedly keeping rates near zero in a bid to help his opponent.
"I think it's good", Trump said of the more than 3% fall in United States stocks Wednesday.
USA long-dated Treasury yields rose again in extension of a trend over the last few weeks fueled by solid US economic data that reinforced expectations of multiple interest rate hikes over the next 12 months. At just over 2 percent, the Fed's short-term policy rate remains low by historic standards, and most indexes of borrowing costs and credit flows still regard broader financial conditions as "loose" and conducive to economic growth.
USA stocks, which recently hit new all-time highs, are now in the midst of an October slump, sliding sharply because investors are anxious about rising interest rates.