IMF Cuts U.S. Growth Outlook

The International Monetary Fund cut its growth forecast for the U.S. economy this year and said the Federal Reserve may have scope to keep interest rates at zero for longer than investors expect.

The Washington-based IMF now sees the world’s largest economy growing 2 percent this year, down from an April estimate of 2.8 percent. The IMF left a 2015 prediction unchanged at 3 percent, and said it doesn’t expect the U.S. to see full employment until the end of 2017, amid low inflation.

“We see prospects looking up for the U.S. but we also believe that attention must now turn to the kinds of policies needed to lay the foundation for growth that will be sustainable,” IMF Managing Director Christine Lagarde said at a press conference in Washington today.

Bloomberg

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