The Federal Reserve's policy of normalizing interest rates is appropriate because the U.S. economy has recovered on all fronts, according to the chairman of J.P. Morgan Chase International.

In the U.S., inflation is at the Fed's target, growth has recovered, labor markets are very good and unemployment is low, Jacob Frenkel told CNBC's Nancy Hungerford at the IMF and World Bank annual meetings in Bali, Indonesia.

"That's the time to normalize," he said. "The Fed has announced it in advance, there are no surprises. Guidance was very clear and the Fed is doing the right thing."

The central bank has raised interest rates three times this year and is largely expected to hike once more before year-end. Its most recent rate hike in September drew criticism from President Donald Trump at the time.

On Wednesday, the president doubled down on his criticism after walking off Air Force One in Erie, Pennsylvania for a rally. "I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy."

Frenkel told CNBC that it is not up to the U.S. president to make such statements.

"There are two issues: Have they gone crazy? And is it up to the president to declare this medical situation? I think that the answer is 'no' to both," he said.

"It's not a good idea for the president to get into these details because at the end of the day, the Fed is a very professional entity. It has the data, it has made the analysis, it has the reputation and it is moving forward and serving the United States and the world economy," Frenkel added.