Wall Street Journal
June 14, 2013
The International Monetary Fund lowered its 2014 growth outlook Friday and waded into the hot public debate over the Federal Reserve‘s monetary easing exit strategy by suggesting that the central bank should continue its $85 billion a month bond buying until at least the end of 2013.
“There is no need to rush to exit from monetary accommodation given the still large output gap, given the subdued growth that we have, and given the well-anchored inflation expectations,” said IMF Managing Director Christine Lagarde.
In its annual assessment of the U.S. economy, the fund kept its forecast for a slight cooling of growth this year to 1.9%, from 2.2% last year. But it cut its estimate for 2014 growth by 0.3 percentage points to 2.7% because of the automatic budget cuts that have crimped output.