Accessibility links

Breaking News

IMF Cuts Growth Forecast for US

Photographers follow International Monetary Fund Managing Director Christine Lagarde as she arrives to discuss the IMF's annual review of the U.S. economy, in Washington, June 16, 2014.
The International Monetary Fund says the U.S. economy will grow two percent this year.

That is slightly faster than last year, but well below earlier predictions from the IMF.

IMF Managing Director Christine Lagarde said unusually bad winter weather hampered business activity and made the world's biggest economy shrink a bit in the first three months of this year. She said the economy has resumed growth and will get stronger in the next few months.

"We believe that this slowdown is temporary, and better prospects lie ahead. "

The IMF says U.S. officials should continue efforts to stimulate the economy with low interest rates, more government spending on infrastructure, and a higher minimum wage. LaGarde said the U.S. minimum wage is lower than other advanced nations.

Top officials of the U.S. central bank begin a routine meeting Tuesday in Washington on where they will make their own assessment of the economy, debate interest rate policy and efforts to bolster growth.

U.S. Federal Reserve Chair Janet Yellen will meet Wednesday with journalists to explain the Fed's latest decisions.