IMF Cuts US Outlook; Urges Minimum Wage Boost

A slow first quarter caused the International Monetary Fund to slash its 2014 forecast for the American economy. The Washington-based development agency also expects full employment for the nation won't materialize until 2017. It urged Washington to increase the nation's minimum wage as a means of boosting the economy, noting a U.S. poverty rate of 15 percent. Although a "meaningful rebound" appears underway, the IMF said it now expects full-year growth for the U.S. of just 2 percent this year, down from its earlier forecast of 2.8 percent, according to its annual outlook. A weak housing market and tough winter weather held back the first quarter, the agency noted, resulting in a weaker full-year outlook. Slack in the economy appears likely to enable the Federal reserve to maintain near zero interest rates for longer than many currently expect, the IMF said.