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America seems immune to the world economy’s problems

Add monetary policy to the list of ways in which America’s economy stands out. Central banks in Canada, Sweden and the euro zone all recently began cutting interest rates. Yet the Federal Reserve on June 12th again postponed its plans for monetary loosening. Even though rates in America have risen higher than in other big rich countries and inflation is falling, the median Fed rate-setter expects a cut of just one quarter of a percentage point this year. Some monetary divergence is the natural consequence of America’s stronger growth. But what is increasingly striking about America’s relative vigour is how immune it appears to be to the threat of political dysfunction and fiscal frailty—factors that weigh heavily in the rest of the world.

According to the European Central Bank’s latest projections, the euro zone’s economy will grow by 0.9% in 2024. A real-time estimate by…

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