There's no good news in this update from the IMF. The ridiculous budget discussion and outcome in the US certainly did not help but policy makers have been off for quite some time. Once again, the stimulus worked, but it was too small. Chances of getting a second shot are nil so brace yourself for stagnate growth (at best) being the new norm.
The IMF sharply revised down its forecast for U.S. 2011 growth to 1.6 percent from a 2.5 percent forecast made just two months ago. It lowered the outlook for 2012 to 2.0 percent from 2.7 percent, ANSA said, citing a draft of the IMF's World Economic Outlook to be issued on Sept. 20.
In view of growing risks to U.S. growth the Fed [cnbc explains] "should stand ready to adopt new non-conventional measures to sustain the economy," ANSA quoted the report as saying.
The revisions are in line with recent comments by IMF chief Christine Lagarde and other senior Fund officials, who have warned about a weakening in the global recovery and a deterioration in the outlook.
