US economy reigns supreme but IMF warns of growing risks

The US economy is expanding faster than any other advanced nation, and in weeks will hit a historic milestone, but the International Monetary Fund and many economists are warning of building signs of trouble.

President Donald Trump's multi-front trade wars, especially with economic power China and the coming conflict with Mexico, threaten to stifle growth in those countries and have dire consequences for the global economy.

For now, US data is showing little impact on the overall economy but global financial markets have been shaken by the trade conflict and the US Federal Reserve this week opened the door to cutting interest rates to salvage growth.

The IMF upgraded its forecast for US growth this year to 2.6 per cent, three tenths higher than it predicted in April, while growth in 2020 is seen slowing to just under two per cent.

The US Commerce Department reported Thursday that the trade deficit fell in April -- good news for Trump who has made that a key focus of his ...