IMF says Fed could keep rates low past mid-2015 if outlook holds via ForexLive

The first headline is bad news for USD but there is some positive news mixed in:

• IMF cuts 2014 US forecast to 1.7% from 2.0%
• Says “meaningful rebound” under way in US economy
• Sees US reaching full employment ‘only by end-2017′
• Leaves 2015 forecast at 3%
• Sees US output gap at near 4% at year-end, could take until 2018 to close

Overall, the persistent weakness in the US is evident in the Treasury market where 10-year yields remain under pressure and are trading at 2.46% after touching 3% at the start of the year. That's a sign of slow growth and low inflation to come.

posted via ForexLive