Donald Trump good for US economy for now as trouble looms, says Lagarde

Though rising US interest rates and a strengthening dollar will challenge global trade

The head of the International Monetary Fund (IMF) says US President Donald Trump taking office is likely good for the US economy in the short term, though rising American interest rates and a strengthening dollar will challenge global trade.

Christine Lagarde said Trump's plans for additional investment in US infrastructure and his likely tax reforms will boost the American economy.

She says: "We have reasons to be optimistic about growth in the United States."

However, Lagarde acknowledged that Trump's policies likely will lead to "tightening that is going to be difficult in the global economy."

She also defended globalisation and international trade at a time of growing protectionism in the US and elsewhere in the world.

Lagarde spoke today in Dubai at the annual World Government Summit.