IMF chief Lagarde defends rate hikes after Donald Trump slams 'crazy' Fed

IMF chief Christine Lagarde on Thursday defended central bank rate hikes in a veiled rebuke to Donald Trump after the US president blamed “crazy” Fed policies for contributing to financial market turmoil.

Lagarde’s comments came as a global market sell-off rolled on following Trump’s comments, underscoring rising financial volatility that the IMF will address at its annual meetings this week in Bali.

Lagarde said central bank rate increases such as those by the policy-setting US Federal Reserve were justified by fundamentals.

“It is clearly a necessary development for those economies that are showing much improved growth, inflation that is picking