ECONOMY

IMF head says Trump is good for US economy

Christine Lagarde, managing director of the International Monetary Fund, reacts to a joke by Richard Quest of CNN in Dubai, United Arab Emirates, Sunday, Feb. 12, 2017.

Christine Lagarde, managing director of the International Monetary Fund, reacts to a joke by Richard Quest of CNN in Dubai, United Arab Emirates, Sunday, Feb. 12, 2017.  (AP)

The head of the International Monetary Fund says U.S. President Donald Trump taking office is likely good for the U.S. 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 U.S. 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 on the global economy."

She also defended globalization and international trade at a time of growing protectionism in the U.S. and elsewhere in the world.

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