IMF says will raise U.S. economic growth forecast

WASHINGTON Sun Dec 22, 2013 10:05am EST

People shop at The Grove mall in Los Angeles November 26, 2013. REUTERS/Lucy Nicholson

People shop at The Grove mall in Los Angeles November 26, 2013.

Credit: Reuters/Lucy Nicholson

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WASHINGTON (Reuters) - The International Monetary Fund predicts the U.S. economy would expand at a faster pace next year, given positive economic data and some signs of compromise in Congress, the head of the Washington-based lender said on Sunday.

IMF Managing Director Christine Lagarde also praised the U.S. Federal Reserve's communication of its decision last week to start scaling back its massive monetary stimulus.

"Growth is picking up," Lagarde said on NBC's "Meet the Press." "And unemployment is going down. So all of that gives us a much stronger outlook for 2014, which brings us to raising our forecast."

The IMF forecast in October that the U.S. economy would expand 2.6 percent in 2014 after growing 1.6 percent this year. At the time, Lagarde warned that Congressional failure to raise the U.S. debt ceiling could damage not only the United States, but the rest of the global economy.

A U.S. Congress, deeply divided along party lines, did manage to pass a limited, two-year budget deal last week to trim some planned spending cuts and reduce the risk of a government shutdown.

Yet the legislation does nothing to avoid a possible U.S. debt default that could occur if Congress does not raise a cap on U.S. borrowing.

President Barack Obama's administration has warned that the government could run out of borrowing authority needed to pay its bills as soon as February if lawmakers do not swiftly raise the debt ceiling.

"The budget deal that was cut at year-end is a very good sign of ... responsibility, accountability and realism," Lagarde said on Sunday.

"I certainly hope that in February, Congress will be equally responsible and will not threaten the recovery with yet another debate about whether or not the U.S. honor or default."

(Reporting by Anna Yukhananov; editing by Christopher Wilson)

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Comments (4)
Afrodo wrote:
Corporate profits, without pnoney-money from the F E D , will be contracting…….Who Are They Kidding?
~ ~ ~ 2014 will be a “Dog-Eat-Dog” out there.

Dec 22, 2013 1:34pm EST  --  Report as abuse
morbas wrote:
USA tax structure is the fault and an obstacle to worldly potential. Transaction tax code imposes disproportionate burden at the most fundamental rights of liberty, justice. Any encumbrance on sustenance is contrary to equality in the ’pursuit of happiness’. Debt and deficit is simply insufficient revenue. We can nationalize the tax code eliminating all other taxation, immediately balancing the budget(s), through a margin graduated income tax principle.
Until the Local Government is allowed to income tax revenue, Detroit is the norm for municipalities.

To: Office of Senator ____________________
United States Senate Washington,
D.C. 20510
To: Office of Representative_________________________
U.S. House of Representatives
Washington, DC 20515
We the people of this United States do proclaim this federal government ‘of, by and for the people’. That, in order to fairly distribute revenue burden, to satisfy ‘net income’ progressive taxation, to balance all governments budgets, and to not tax poverty;
The people mandate:
Income National Tax code that shall use margin graduated income tax principle: Margin $30k 0% single, $60K 0% joint, income above this a linear increasing rate {Income-[$30k or $60k])*(Income/$800k)*90%; 90% limit} . Exemptions shall be prohibited. The Federal Reserve shall amend the (90%) rate, and control currency printing mandated to maintaining currency availability and value. The Federal Reserve shall set the Margin rate value well (>2x) above highest of all State Poverty Level(s). Revenue shall be proportioned 1/3rd Federal,1/3rd State proportioned per cast ballot and 1/3rd Local proportioned per cast ballot.
This National Tax is a peoples tax, no other citizen taxation shall be permitted. Business shall not be taxed. The Federal Reserve shall control taxation. The people will by simple majority approve or reject all margin and rate changes at every Congressional House Representative election year ballot.

morbas(i)

Dec 22, 2013 2:14pm EST  --  Report as abuse
lag46 wrote:
Morbas,

You can tax everyone at 100% and still have a problem if government will not limit spending. And, I think we make better citizens if we all have some skin in the game (exceptions, of course for the needy and not the inept).

Dec 22, 2013 2:55pm EST  --  Report as abuse
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