Trump has frequently criticised the US central bank for gradually raising interest rates.
Asian markets plunged Thursday morning following the worst session on Wall Street for months, as US President Donald Trump said the Federal Reserve had "gone crazy" with plans for higher interest rates.
Tokyo, Hong Kong and Shanghai all plummeted around four percent in morning trade, as investors fretted about surging interest rates and the ongoing US-China trade war.
"All bets are off," warned Stephen Innes, head of Asia-Pacific trading at OANDA, adding that markets were "fraught with peril".
"The US equity bloodbath is taking no prisoners in Asia as a sea of red greets investors at the open, as equity deleveraging and liquidation intensifies," he said.
Taipei led the rout with a six percent plunge while the Shenzhen Composite Index, which tracks stocks on China's second exchange, was down 5.2 percent.
Seoul fell more than three percent and Sydney and Singapore both dropped two percent.
The steep drop in Asia followed Wednesday's plunge in New York, with the Dow Jones dropping nearly 830 points -- the biggest fall since February -- after Trump's latest criticism of the Federal Reserve.
"I think the Fed is making a mistake," Trump told reporters as he arrived for a campaign rally ahead of the US mid-term elections.
Trump has repeatedly touted Wall Street records as proof of the success of his economic programme. But he downplayed the first major drop in months, saying it was a "correction that we've been waiting for".
In a phone interview with Fox News at Night, the president reiterated his earlier criticism, saying: "The Fed is going loco and there's no reason for them to do it and I'm not happy about it," he added.
But International Monetary Fund chief Christine Lagarde hit back on Thursday, defending rate hikes that she said were justified by fundamentals.
"It is clearly a necessary development for those economies that are showing much improved growth, inflation that is picking up... unemployment that is extremely low," she told reporters in Bali where the Fund is meeting.
- 'Just beginning' -
The rout in US shares followed substantial losses on European bourses, due in part to tensions between Brussels and Rome over Italian budget plans that have revived fears about the eurozone.
Bourses in Paris and Frankfurt both lost more than two percent, while London fell 1.3 percent. AFP Reports