Trump says Federal Reserve 'out of control'

President Donald Trump has intensified his attack on the US Federal Reserve following plunge in stock prices, saying the central bank is "out of control" in raising interest rates, but ruled out firing its head Jerome Powell.

Trump's remarks were the latest in series of recent barrages he has unleashed at the Fed.

The Fed under his hand-picked chairman Powell has been gradually raising rates as the economy has strengthened to prevent a run-up in inflation.

"I think the Fed is out of control. I think what they're doing is wrong. Under the Obama administration, you had a lot of help because they had very little interest," Trump told reporters at the White House while responding to questions on the down sliding of the stock market for a second consecutive day.

While the Dow Jones Industrial Average fell by 546 points, the S&P 500 tumbled 2.1 per cent and Nasdaq Composite by 1.3 per cent.

"When you talk about economies, our economy is far better than that. But we have actually -- we're paying interest. They weren't. They were using funny money. But I think the Fed is far too stringent, and they're making a mistake and it's not right. Despite that, we're doing very well but it's not necessary, in my opinion. I think I know about it," he said.

(Agencies)