The US Federal Reserve does consider the impact of interest rate hikes on emerging markets when setting policy, but the increases are the “right course of domestic policy” for the world's largest economy, said a top Fed official on Saturday.

The comments by Fed Vice Chair Randal Quarles came as some emerging markets face increasing pressure this year as higher US interest rates draw foreign capital away, and due to fears of fallout from a tariff war between the US and China.

The Fed has also been at the receiving end of criticism from President Donald Trump, who on Thursday called its interest rate increases a “ridiculous” policy. Those surprisingly caustic remarks came a day after the president told reporters, in response to a Wall Street rout, that the “Fed has gone crazy.”