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Trump: Wall Street sell-off would be 'big mistake'

Trump: Wall Street sell-off would be 'big mistake'
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President TrumpDonald John TrumpAccuser says Trump should be afraid of the truth Woman behind pro-Trump Facebook page denies being influenced by Russians Shulkin says he has White House approval to root out 'subversion' at VA MORE said traders selling stocks are making a "big mistake" on Wednesday, his first comments about the wild swings in the stock market that have cut into the gains made during his presidency.

Trump said the economy is strong and that those trading stocks will regret their actions.

"In the 'old days,' when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down," Trump tweeted. "Big mistake, and we have so much good (great) news about the economy!"

 

The Dow Jones industrial average was up nearly 200 points in morning trading. 

It fell more than 2,000 points from midday Thursday to Tuesday morning before gaining by the end of Tuesday.

The sell-off has been triggered by fears that a growing economy will raise inflation and lead the Federal Reserve to increase interest rates.

Trump has repeatedly highlighted the rising market as a testament to his economic stewardship over the past 12 months, most recently in his State of the Union address last week. His warning differs with the reaction of his Treasury secretary and Republican lawmakers, who've called the downturn a natural, expected reaction to economic conditions.

Treasury Secretary Steven MnuchinSteven Terner MnuchinOvernight Tech: Judge blocks AT&T request for DOJ communications | Facebook VP apologizes for tweets about Mueller probe | Tech wants Treasury to fight EU tax proposal Overnight Regulation: Trump to take steps to ban bump stocks | Trump eases rules on insurance sold outside of ObamaCare | FCC to officially rescind net neutrality Thursday | Obama EPA chief: Reg rollback won't stand Big tech lobbying groups push Treasury to speak out on EU tax proposal MORE said Tuesday that stock markets are “functioning very well” amid wild volatility after a day of record-breaking losses.

"I don’t think these types of moves, given how much the market has rallied, pose systemic risk," Mnuchin said. "You've seen a normal market correction, although large."

House Financial Services Committee Chairman Jeb HensarlingThomas (Jeb) Jeb HensarlingMick Mulvaney has ignited a firestorm to rein in the CFPB Exiting lawmakers put in calls to K Street GOP rep hits party for passing budget, government funding deal MORE (R-Texas) said the downturn was “ironic, but totally predictable." 

“Artificial interest rates have been helpful for some on Wall Street, but not many on Main Street,” said Hensarling, who had long called on the Fed to quicken the pace of rate hikes.

House Ways and Means Chairman Kevin BradyKevin Patrick BradyTrump gets recommendation for steep curbs on imported steel, risking trade war Business groups pressing for repeal of ObamaCare employer mandate Watchdog: IRS issued bonuses to employees with conduct issues MORE (R-Texas) said Monday that the stock market dip proved that the GOP tax bill passed enacted last month is already stimulating the economy.

“Corrections like this are normal," Brady said, arguing the tax downturn . “We want an economy where paychecks increase.”

Updated at 12:16 p.m.