IMF boss defends Federal Reserve after Trump calls it 'crazy'

Christine Lagarde says policy of raising US interest rates 'legitimate and necessary'

The boss of the International Monetary Fund has defended the Federal Reserve's interest rate rises as "legitimate and necessary", after Donald Trump said the central bank had "gone crazy".

Christine Lagarde made the comments at the IMF's annual meeting in Bali, against a backdrop of tumbling stock markets and the biggest fall on Wall Street in eight months, which President Trump partly blamed on the Fed's actions.