His remarks have broken a long-standing tradition of U.S. presidents not commenting on the Fed's policies to preserve the central bank's independence.
In a series of tweets on Friday, Mr. Trump said China, the European Union and others had been "manipulating their currencies and interest rates lower" while the dollar gained in strength, eroding "our big competitive edge". Trump complained that China's currency is "dropping like a rock". More than 70 per cent of Republican and Republican-leaning USA adults believe increased tariffs between the United States and its trading partners will be good for the country, according to a Pew Research Centre survey. S&P stock-index futures declined along with the Stoxx Europe 600 gauge after Trump's comments aired.
The current Fed chairman, Jerome Powell, is a Trump appointee.
The dollar has strengthened since late 2015 as the Federal Reserve began raising interest rates against a background of steady economic growth, slowly rising inflation and the lowest USA unemployment rate since the 1960s.
In the CNBC interview, Mr. Trump also said he was "not happy" the Fed planned to continue raising benchmark lending rates. But rate increases also make borrowing costlier for households and companies and can weaken growth. Of course the President respects the independence of the Fed. "I don't like all of this work that we're putting into the economy and then I see rates going up". A loss of confidence from investors could lead to concerns of runaway inflation.
In a Friday tweet, Trump said: "The United States should not be penalized because we are doing so well".
A number of factors, including inflation and higher interest rates, could soon counteract the fiscal stimulus, however, and economists say the risk of recession in the coming years is growing.
"If the market starts to feel the Fed is being manipulated politically, that's a really bad story".
It's what allowed the Fed to take emergency measures in the past, without fear of political meddling, such as in 2008 when it undertook an aggressive policy known as quantitative easing, whereby it bought massive amounts of debt to create new money out of nothing, to stimulate the economy.
But many analysts are skeptical that Trump's tactics will produce such an outcome.
"This underscores the inconsistency in these policies", said Joachim Fels, global economic adviser at Pacific Investment Management Co.in Newport Beach, California.
"I'm not doing this for politics - I'm doing this to do the right thing for our country", he added.
"I'm not thrilled. Because we go up and every time you go up they want to raise rates again".
Trump had a love-hate relationship with former Fed chief Janet Yellen.
When asked if the move might cause a stock market drop, he said: "Well, if it does, it does".
Wall Street is becoming increasingly immune to Donald Trump's headline-grabbing behaviour. Past presidents have also steered clear of commenting on USA monetary policy out of respect for the Fed's independence so the path of borrowing costs doesn't move with the whims of politicians. "I said, "How did this ever happen?' ...one of the great people of China said, 'There was never anybody to talk to in the United States".