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IMF Says Fed May Have Scope for Zero Rate Past Mid-2015

Bloomberg (07/23/14) Nina Glinski

According to the International Monetary Fund, the U.S. Federal Reserve may have reason to keep interest rates near zero due to muted inflation and the 2014 slowdown that is prolonging the recovery of the labor market. IMF forecast 2.0% 2014 growth last month but has since reduced its annual forecast to 1.7% due to contraction in the first quarter. It anticipates 3.0% growth next year, the fastest expansion since 2005.