"We are already witnessing some softness in highly rate-sensitive segments of the economy, such as the housing sector, where home price appreciation has slowed somewhat and fewer new homes are being built than previously in the cycle", said Rick Rieder, the chief investment officer of global fixed income at BlackRock, in a note on Thursday.
Trump, who has frequently invoked rising stock prices as an affirmation of his economic policies, downplayed the significance of the market drop even as he pointed the finger at the Fed. Three have PhDs in economics and three have law degrees.
"The fed is going loco and there's no reason for them to do it and I'm not happy about it", he added.
Trump has levied or threatened tariffs on goods from economies around the world, notably China, but also on traditional allies such as the European Union. That comes after a big tax cut enacted last December. He has repeatedly criticized the central bank for raising interest rates this year, decisions aimed at preventing the economy from overheating.
In July, the president complained about the Federal Reserve raising interest rates.
The remarks are some of the most specific statements that senior Fed officials have given about when they anticipate halting their campaign of higher interest rates.
President Donald Trump's 24-hour bashing of the Federal Reserve is unlikely, for now, to shake the central bank's standing among its two key constituencies that matter more: financial markets and Congress. "There is no going loco for the Fed", said Hooper. They have reached out to the Fed leader to ensure there hasn't been improper political interference. "The president is not dictating policy to the Fed.They are independent. We don't let other things distract us".
Steve Massocca, senior vice president at Wedbush Securities in San Francisco, said he thought the downturn would b short-lived.
The Fed has less control over longer-term interest rates, which move mostly on expectations for future economic growth and inflation.
"I think we don't have to go as fast", Trump reportedly said. The Fed's main interest rate, the federal funds rate, now stands between 2 and 2.25 per cent.
Over the past three years, the Fed has raised rates eight times. "That doesn't seem especially surprising".
The Fed last raised interest rates in September and left intact its plans to steadily tighten monetary policy, as it forecast that the U.S. economy would enjoy at least three more years of economic growth.
Mnuchin's calm was echoed by US Federal Reserve officials and other worldwide policymakers as the fall in US equities extended to Asia yesterday, with benchmarks from Tokyo to Hong Kong seeing declines above 3%.
"I wouldn't associate Jay Powell with craziness", Managing Director Christine Lagarde told CNBC in an interview.
While he refused to make specific comments about it, he argued that there was "no mixed message" between his reticence and the sharp criticism Donald Trump levelled at the U.S. central bank last week.