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

Christine Lagarde was speaking at the World Government Summit in Dubai. And she defended globalization and international trade at a time of growing protectionism in the US and elsewhere in the world. 

She said:" From the little we hear, we have reasons to be optimistic about economic growth in the United States.

"It is likely that there will be a tax reform, it's likely that there will be additional investment in infrastructure and as a result of that, it is very likely that growth will be up in the US.

"So the currency higher, interest rates higher, that is a tightening that will be difficult on the global economy and for which economies have to prepare."