Arab Today, arab today imf cuts us forecast issues warning
Last Updated : GMT 21:34:48
Arab Today, arab today
Arab Today, arab today

IMF cuts US forecast, issues warning

Arab Today, arab today

Arab Today, arab today IMF cuts US forecast, issues warning

A ferry terminal
Washington - AFP

The International Monetary Fund on Monday slashed its forecast for the United States and urged policymakers to keep interest rates low and raise the minimum wage to strengthen growth in the world's largest economy.
The global crisis lender said in its annual report card on the US economy that the country will likely grow only 2.0 percent this year, compared with the previous 2.8 percent estimate, blaming mainly the unexpected contraction in the first quarter.
It said growth is likely to rebound to 3.0 percent next year, but to ensure that, the government should take measures like increasing the minimum wage and embarking on a strong infrastructure-building program.
Moreover, the US Federal Reserve should not expect the economy to get back to full employment before the end of 2017, and that it could afford to hold its key interest rate at the zero level past the middle of next year, when the Fed has signaled it expects to raise the rate.
"The scars of recession are still visible," IMF managing director Christine Lagarde warned.
She cited still-high long-term unemployment, low labor-force participation, and the fact that some 50 million Americans still live in poverty.
"There is no single measure that is going to deal with all those issues," she said.
"The US should invest in its future... The priority is to invest in people and to invest in infrastructure."
The IMF report said that the US labor market remains significantly weaker than is implied by the headline 6.3 percent unemployment rate.
It pointed to stagnant wages and the low workforce participation rate, now 62.8 percent compared to more than 66 percent before the 2008 economic crisis.
The IMF said the US government could afford to take short-term measures to strengthen growth and jobs, despite the ongoing large fiscal deficit and huge government debt burden.
But it said that warring political parties need to come up with a medium-term plan for addressing those problems, one that includes revising the tax structure to raise revenues, cutting the growth of health care costs, and fundamentally reforming the government's social security pension program.
"Given the substantial economic slack in the economy, there is a strong case to provide continued policy support," the Fund said.
- Political battle -
It said more government efforts to boost growth short term would allow the Federal Reserve to more comfortably exit its easy-money stance and cut the risks that stance poses to global financial stability.
At the same time, the IMF said that "regrettably," US politicians have been unable to agree on such an approach.
Stepping into a hot domestic political battle, the IMF took the side of the administration of President Barack Obama in advocating a rise in the minimum wage.
It noted that, in real terms, wages have fallen significantly over the past four decades, an issue which economists say locks many Americans in poverty.
The Fund said that nearly 50 million Americans still live in poverty, and that the principal way government policy could help would be to return to stronger growth and job creation.
But it added that increasing the minimum wage from the current federal government standard of $7.25 an hour "would help raise incomes for millions of working poor."
"Any increase of that minimum wage would be helpful from an economic point of view," said Lagarde.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf cuts us forecast issues warning Arab Today, arab today imf cuts us forecast issues warning

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday