US growth may be a global boon, but inflation could derail the train

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US economic growth is supporting global expansion, but high inflation and tight monetary policy in the US could pose risks. The outlook for the global economy depends on whether US growth is driven by constructive forces or fiscal deficits that stoke demand and inflation. Recent data show inflation above the US central bank's target, GDP expanding above potential, and uncertainty about when rate cuts might start. The IMF's World Economic Outlook will be released on Tuesday. European Central Bank President Christine Lagarde's press conference raised questions about the divergence of monetary policy from the US if inflation persists. The Fed's monetary policy and the impact of strong US growth on the global economy are being closely watched. The US Congressional Budget Office raised its outlook for potential US economic growth based on increased immigration and labor productivity. If the US economy remains too strong or financial conditions too loose for a full return of inflation to the Fed's target, the US divergence may become a drag on the global economy. The risks of recession are somewhat elevated in the US and other countries.

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https://www.yahoo.com/news/us-growth-may-global-boon-050344859.html