IMF's Lagarde says U.S. economy 'doing absolutely fine'
International Monetary Fund managing director Christine Lagarde had some praise for President Trump, telling FOX Business that he gets many things right and that is reflected in the health of the U.S. economy.
“The U.S. economy is doing absolutely fine. It is right at the moment” said Lagarde while speaking to FOX Business’ Connell McShane in Washington D.C.
That said, Lagarde does have some reservations about Trump’s negotiating tactics, especially when it comes to trade. Trump continues to spar with China as tariffs remain in place on both ends and talks continue between the world’s two largest economies. And earlier this week, Trump took aim at the European Union, threatening $11 billion worth of tariffs over a legacy debate that airline makers Airbus and Boeing are both getting assistance as each fiercely battles for global airline orders.
“I'm concerned about the possibly lasting impact that of the threat of trade war can have on economies You listen to policymakers and you take your decisions.. you decide to open an office, you decide to set up a subsidiary, you decide to hire people on the basis of what you anticipate, so when threats are on the horizon, you just watch. You wait" she warned.
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Global economists share Lagarde’s concerns, uncertainty over trade is a main reason CEOs hold off on decision making and spending, which can lead to a broader global economic slowdown.