President Donald Trump renewed his attack on the Federal Reserve Wednesday, calling the central bank's policymakers 'boneheads' as he called for U.S. interest rates to be cut to zero percent.

The latest attack on Fed Chairman Jerome Powell, whom Trump appointed last year, comes as policymakers at the European Central Bank meet today in Frankfurt for the start of of a two-day discussion that is likely to see President Mario Draghi deliver deeper negative interest rates on the Bank's overnight deposit facility and a pledge to keep supporting the region's recovery with liquidity and bank lending program.

Benchmark 10-year U.S. Treasury bond yields were little changed at 1.725% following the President's Tweets, but have risen more than 20 basis points since late August amid fading bets on a return to quantitative easing in Europe, reports of possible spending increases from Germany and stronger-than-expected wage increases from last month's non-farm payroll report. 

The Fed will kick-off its own policy meeting next week, with a rate decision slated for 2:00 pm eastern time on Wednesday September 18. The CME Group's FedWatch tool suggests traders are pricing in a 91.25 chance of a 25 basis point rate cut, which would love the Fed's key lending rate to a range of 1.75% to 2%. Chances of a further 25 basis point cut in October is currently trading at around 52.6%, the FedWatch tool suggests. 

The ECB's key refinancing rate sits at 0%, after being cut in 2016, while the Bank of Japan's short-term interest rate target is set at -0.1%. The Bank of England's Bank Rate has held at 0.75% since August of last year. 

"Despite last Friday's lower-than-expected headline of the US non-farm payrolls print, Dollar bulls have taken the softer US jobs market in their stride, propping up DXY this week with strong support around 98.10. Most G10 currencies are gaining against the greenback at the time of writing, while Asian currencies are posting mixed results," said FXTM market analyst Han Tan.

"The upcoming US inflation and retail sales data releases for August are set to shape market expectations over the Fed's rates path in the lead up to next week's policy decision," he added