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IMF Cuts U.S. Outlook, Urges Minimum Wage Boost

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A slow first quarter caused the International Monetary Fund to slash its 2014 forecast for the U.S. economy.

The Washington-based development agency also expects that 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 two 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.

Posted-In: IMF International Monetary FundNews Econ #s

 

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