FINANCIAL TIMES: The International Monetary Fund denounced the tightening of US fiscal policy as “excessively rapid and ill-designed”, saying it will knock as much as 1.75 percentage points off growth this year.
In its annual economic check-up on the US, the IMF forecast growth of just 1.9 per cent this year and cut its 2014 outlook to 2.7 per cent from the 3 per cent it expected as recently as April…
“The IMF’s advice is to . . . slow the fiscal adjustment this year – which would help sustain growth and job creation – but hurry up with putting in place a medium-term road map to restore long-run fiscal sustainability,” said Christine Lagarde, IMF managing director… (more)
