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IMF reduces U.S. growth outlook forecast

  • The International Monetary Fund has cut its 2014 U.S economic growth forecast to 2% from the 2.8% it predicted in April, due to a weak first quarter. A harsh winter, struggling housing market and weak international demand for the country's products have all attributed to the economy's contraction in Q1. However, the fund has maintained its 3% growth outlook for 2015, stating a "meaningful economic rebound is under way."
  • Markets are expecting the Federal reserve to start raising rates in the middle of next year, although the IMF related that it is not certain that it will be the case. Rates have been near zero since late 2008.
  • Issuing a warning, the IMF declared, "The U.S. must cut spending and raise revenue in the long term to avoid public debt overwhelming the country's finances," and also cautioned regarding unemployment risk. To boost more people into the workforce, the organization suggests increasing near-term spending on infrastructure, education, job training and child-care subsidies.
Comments (2)
  • Patent News
    , contributor
    Comments (1408) | Send Message
    Who says the IMF is correct? They were VERY WRONG about the Uk... doubting their abilities!!

    17 Jun 2014, 03:05 AM Reply Like
  • Rope a Dope
    , contributor
    Comments (611) | Send Message
    In reality, this isn’t any more complex than 1st grade math; you simply cannot continue to spend more money than you take in …. forever.


    Regrettably, a majority of Americans continue to vote for people who refuse to recognize this insurmountable problem and it appears nothing short of complete economic collapse will awaken them from their stupor. I have no doubt that is precisely what will happen at some point in the not too distant future.
    17 Jun 2014, 07:49 AM Reply Like
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