The IMF gave a downbeat assessment of the world’s largest economy and denounced the tightening of US fiscal policy as “excessively rapid and ill-designed”.
Summing up its annual Article 4 consultation with the US, the International Monetary Fund forecast growth of just 1.9 per cent this year, followed by 2.7 per cent in 2014.
It said that overly rapid tightening of fiscal policy this year – including tax rises and $85bn in across-the-board, sequestration cuts to public spending – will knock between 1.25 and 1.75 percentage points off growth this year.
Source: Financial Times. Read full article. (link)