IMF cuts US growth forecast, urges 'very gradual' rate hikes

Washington

THE International Monetary Fund (IMF) cut its forecast for US growth this year, urging the Federal Reserve to lean towards modestly overshooting its inflation target in considering whether the economy can handle higher interest rates.

The IMF said that the US economy will grow 2.2 per cent this year, less than its projection of 2.4 per cent in April. The fund left unchanged its forecast for a 2.5 per cent expansion in 2017.