IMF chief Christine Lagarde launched an attack by global economic organisations on Donald Trump’s “America First” trade policy on Monday the 11th of June.
Lagarde went on to warn that clouds over the international economy keep getting darker and darker according to sources.
Trump reversed out of a joint communique which was agreed by Group of Seven leaders in Canada at the weekend. The leaders had previously mentioned the requirement for free trade which is equally beneficial to all parties involved and also, the prominence of battling protectionism.
In addition, the significantly growing gap in the public finances will make for a near-term boost to the US economy and those of some trading partners. However, it involves a number of risks for the global economy.
Amongst this, is the potential for faster-than-expected inflation, which may push the Federal Reserve to raise rates more quickly than markets have been expecting.