ISTANBUL 

US President Donald Trump said Wednesday that there is "No Inflation" and the Fed must lower interest rates "big," following the unexpected fall in producer inflation in August.

"Just out: No Inflation!!! 'Too Late' must lower the RATE, BIG, right now," Trump wrote on social media company Truth Social, which he owns.

"Powell is a total disaster, who doesn’t have a clue!!!" he added.

US producer prices unexpectedly fell in August, with the Producer Price Index (PPI) declining 0.1% month-on-month, in contrast to estimates of a 0.3% rise.

On an annual basis, producer inflation was at 2.6%, also below estimates of a 3.3% rise.

The producer price index is an important indicator of consumer inflation, which will be announced Thursday.

The inflation figure is one of the two mandates the Fed considers when determining monetary policy. The policy is currently between 4.25% and 4.5%.

Relations between Fed Chair Jerome Powell and Trump have been sour, as Trump has repeatedly demanded the Fed cut interest rates, citing moves by European central banks. He warned that delays could stall the US economy.

Despite the political pressure, the Fed has kept rates constant for the last five meetings.

The next meeting will be held Sept. 16 - 17, when the central bank is widely expected to cut rates by 25 basis points due to a weakening job market.