"I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy," the president said after walking off Air Force One in Erie, Pennsylvania for a rally.
Fears about rapidly rising rates helped cause the Dow Jones Industrial Average to drop more than 800 points Wednesday. The S&P 500 posted its worst day since February and clinched its first five-day losing streak since 2016.
"Actually, it's a correction that we've been waiting for for a long time, but I really disagree with what the Fed is doing," the President added.
The Fed has raised interest rates three times this year and is largely expected to hike once more before year-end.
The most recent September rate hike drew criticism from Trump at the time, who said he was "worried about the fact that they seem to like raising interest rates, we can do other things with the money," he said.