IMF Urges US To Increase Minimum Wage

The International Monetary Fund released its annual review of the U.S. economy on Monday and called on the U.S. to raise its federal minimum wage rate.

The IMF described the U.S. minimum wage as low by both historical and international standards, saying that an increase would raise incomes for millions of working poor Americans.

The IMF also lowered its U.S. gross domestic product growth forecast to 2 percent for this year. For 2015, it maintained a forecast of 3 percent.

It estimated the U.S. will reach full employment by 2017, adding that inflationary pressures will remain muted and the Federal Reserve policy rate could remain at zero longer than mid-2015.

This marks the first time that the IMF has endorsed raising the U.S. minimum wage. It comes amid increased discussion on Capitol Hill about hiking it with calls from U.S. President Barack Obama and some Democrats for a jump to $10.10 per hour.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza