Trump says "devalued" currencies put the US at a disadvantage and the Fed does not have a clue

President Donald Trump said on Tuesday that the United States was at a disadvantage compared to other major currencies such as the euro, with other central banks keeping interest rates low, while rates of the Federal Reserve were higher in comparison.

"The euro and other currencies are devaluing against the dollar, which puts the US at a significant disadvantage," Trump told Twitter, adding that the Fed had "no idea".

Trump also said in a separate tweet that the United States has low inflation, calling it "a beautiful thing".

The dollar fell slightly against the euro as a result of Trump's tweets, but remained little changed.

Trump has repeatedly attacked the Fed for what he considers to be a restrictive monetary policy. The Fed raised its rates four times in 2018.

In December, after the central bank raised its rates for the last time last year, Trump had eviscerated the Fed. Trump called the Fed "the only problem of our economy" in a tweet, noting that she "has no idea of ​​the market".

Trump also told CNBC's Joe Kernen on Monday that the Fed had "made a big mistake: it had raised interest rates far too quickly." China continues to devalue its currency, added Trump. "Do not forget: the president of the Fed in China is President Xi … he can do what he wants."

But market expectations of lower rates have risen recently after declining economic data. The May Department of Labor employment report indicated employment growth of only 75,000, well below estimates. At the same time, growth in manufacturing activity slowed last month to its slowest pace since October 2016.

The data, coupled with comments from Fed Chairman Jerome Powell, has led traders to predict a July rate risk of 78% in July, according to the CME Group's FedWatch tool. Powell said last week that the Fed would "do the right thing" to maintain the current economic expansion.