Arab Today, arab today imf us could fall off \fiscal cliff\
Last Updated : GMT 06:43:14
Arab Today, arab today
Arab Today, arab today

IMF: US could fall off \'fiscal cliff\'

Arab Today, arab today

Arab Today, arab today IMF: US could fall off \'fiscal cliff\'

Washington - UPI

The US economy could be pushed off a \"cliff\" if Washington lets Bush-era tax cuts expire and forced spending cuts begin, the International Monetary Fund said. If the tax increases and mandatory spending cuts -- worth as much as 4 percent of gross domestic product -- are allowed to kick in as scheduled Jan. 1, 2013, the sudden shock could be enough to put the country back into recession, and possibly even contract, with global repercussions, the fund said in its annual U.S. economic review. Analysts said the dire forecast agreed with a growing chorus of analysts and others, including Federal Reserve Chairman Ben Bernanke, who warn political deadlock on Capitol Hill could lead the nation into an economic disaster, The Washington Post said. The Bush-era tax cuts refer to tax-code changes passed during the George W. Bush administration that generally lowered tax rates and revised the U.S. tax code. They are set to expire Dec. 31, along with a temporary payroll-tax holiday sought by President Barack Obama. The mandatory spending cuts are part of a deal that ended a U.S. debt-ceiling crisis that threatened to lead the United States into sovereign default around Aug. 3, 2011. The deal stipulates if Congress fails to produce a deficit-reduction bill with at least $1.2 trillion in cuts, it can grant a $1.2 trillion increase in the debt ceiling but the action would trigger $1.2 trillion in across-the-board spending cuts split equally between defense and non-defense programs. Fund Managing Director Christine Lagarde told reporters Tuesday Congress should \"promptly\" raise the debt ceiling to avoid spooking the global markets and possibly raising the country\'s borrowing costs. \"The threat -- only the threat -- of a delay in raising the debt ceiling ... could weaken growth already later this year\" if world debt markets become concerned about the ability of the United States to sustain its rising debt levels, Lagarde said. The government is expected to hit its statutory borrowing limit late this year. \"It is critical to remove the uncertainty created by the \'fiscal cliff\' as well as promptly raise the debt ceiling, pursuing a pace of deficit reduction that does not sap the economic recovery,\" the fund said in its report. The fund cut its U.S. growth estimates to 2 percent for this year and 2.25 percent for 2013. In April, it estimated 2.1 percent growth for this year and 2.4 percent for 2013. Other government forecasters have also lowered estimates recently. The Federal Reserve lowered its 2012 growth estimate last month to a range of 1.9 percent to 2.4 percent, down from a 2.4 percent to 2.9 percent range it projected in April. The IMF warned of \"downside risks\" from a protracted eurozone crisis, and warned of \"a very large fiscal adjustment in 2013\" if the \"tepid\" U.S. recovery doesn\'t continue this year. Lagarde said that despite high U.S. debt levels, policymakers should still increase spending on infrastructure, worker-training programs and other efforts to keep short-term growth on track. Specifically, she said the fund recommended Washington slow its budget-cutting in the short run by spending an additional $100 billion or more on a variety of programs, even if that leads to slightly larger temporary government deficits. \"U.S. authorities do not have a lot of space available ... but they should use it to support the recovery in the near term,\" Lagarde said. Efforts to trim the federal deficit have \"to be sensible and certainly not excessive.\" \"A small deficit reduction for 2013,\" which Lagarde said was about 1 percent of GDP, \"would be perfectly appropriate,\" she said. Democratic and Republican U.S. officials had no immediate comment on the IMF report.

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 us could fall off \fiscal cliff\ Arab Today, arab today imf us could fall off \fiscal cliff\

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues

GMT 05:34 2017 Monday ,27 February

Brexit sows seeds of doubt for British farmers

GMT 06:38 2017 Sunday ,26 February

US rig count increases

GMT 06:01 2017 Sunday ,26 February

BRIC funds see inflows amid emerging equity boom

GMT 05:43 2017 Sunday ,26 February

Al-Gergawi quits Dubai Holding to focus on govt role

GMT 05:14 2017 Sunday ,26 February

Oil prices to average $50-$70 through 2022

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner

GMT 05:53 2017 Saturday ,25 February

Global sovereign debt to hit new all-time high
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
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 Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
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