The chief economist of the International Monetary Fund (IMF) Gita Gopinath on Wednesday said the US Federal Reserve has some scope for another interest rate cut.

Speaking to CNBC in Portugal, Gopinath said the importance of independent central banks especially on policy decisions has to be preserved, "There are a lot of benefits that will come from this independence, it is important to maintain that."

Yesterday, US President Donald Trump criticised European Central Bank President Mario Draghi's comments that further monetary policy changes may be needed by the ECB, saying that would spark unfair European competition against the United States.

When asked if a little bit of higher or lower exchange rate would make or break the competitiveness of the US, she said, “Most empirical evidence will tell you that would not be the case with small exchange range movements."

First Published:Jun 19, 2019 6:39 PM IST