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IMF cuts 2014 U.S. growth outlook

  • Following unexpected Q1 weakness in the U.S. economy, the IMF trims its full-year 2014 U.S. growth forecast to 1.7% from 2%, but sees that level picking up to 3% over the next 18 months.
  • The agency also sees the first Fed rate hike coming about a year from now, but labor market slack and low inflation should allow the central bank to slowly ratchet up interest rates.
Comments (12)
  • ComputerBlue
    , contributor
    Comments (838) | Send Message
     
    By slowly, they mean over a LONGGG time period.
    23 Jul 2014, 12:19 PM Reply Like
  • minecanary
    , contributor
    Comments (529) | Send Message
     
    Yeah, long as in never. Between the deficit and the effect it would have on their bond holdings, the next move will be another QE phase.
    23 Jul 2014, 12:56 PM Reply Like
  • ComputerBlue
    , contributor
    Comments (838) | Send Message
     
    Shhh...don't tell CNBC..they love talking about interest rates 10000x a day.
    23 Jul 2014, 01:00 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11285) | Send Message
     
    LOL people have been saying it will pick up over 3% for the last 6 months after the terrible January appeared.
    23 Jul 2014, 01:00 PM Reply Like
  • tunaman4u2
    , contributor
    Comments (3104) | Send Message
     
    Its funny how the awful GDP reads, which at this rate may be negative for the year, proves how farcical the Fed created recovery is.

     

    New highs everyday. To what end if not GDP? Wages flat & inflation hot.

     

    Stagflation... congratulations Fed, well done
    23 Jul 2014, 03:58 PM Reply Like
  • caupachow
    , contributor
    Comments (427) | Send Message
     
    it will contract 3 more times before we ever see 3% growth.
    23 Jul 2014, 01:13 PM Reply Like
  • Stephen Aniston
    , contributor
    Comments (2706) | Send Message
     
    Wow, look the IMF can do math!
    23 Jul 2014, 01:51 PM Reply Like
  • Rock228
    , contributor
    Comments (858) | Send Message
     
    2.8% GDP - 2012
    1.9% GDP - 2013
    1.7% GDP - 2014 or as the Fed calls it "accelerating growth" LOL :)

     

    http://abt.cm/1mfUWnG
    23 Jul 2014, 03:26 PM Reply Like
  • ComputerBlue
    , contributor
    Comments (838) | Send Message
     
    Things are really starting to pick up steam.
    23 Jul 2014, 03:29 PM Reply Like
  • Lakeaffect
    , contributor
    Comments (1082) | Send Message
     
    It strikes me that the S&P 500 EPS is only growing as a result of buybacks financed by ZIRP. The underlying businesses may not be growing at all, and they might even be shrinking. If this is the case, then the outlook for strong GNP growth is not bright, as last time I checked, borrowing to fund stock buybacks is not a component of GNP, nor does it do anything to increase employment.
    23 Jul 2014, 02:04 PM Reply Like
  • june1234
    , contributor
    Comments (2841) | Send Message
     
    Get with the program its always 3%
    23 Jul 2014, 02:12 PM Reply Like
  • TraderzOracle
    , contributor
    Comments (21) | Send Message
     
    Why would the IMF cut growth forecast if the economy is recovering? Also stock market is hitting all time highs. Isn't this supposed to be good for GDP?
    23 Jul 2014, 03:34 PM Reply Like
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