The International Monetary Fund (IMF) has released its updated 2014 to 2015 economic outlook. The good news is that the group has increased its expectations moderately. The bad news is that this is mostly due to the growth in the United States.
Tuesday’s updated outlook shows that the recovery is strengthening on an uneven field. The IMF’s take is that the global activity has broadly strengthened. It is also that the growth is expected to improve further in 2014 to 2015.
The expectation is that the growth will come from advanced economies. One thing stands out that Fed watchers may look at closely: advanced economy policymakers need to avoid a premature withdrawal of monetary accommodation. The IMF said:
Although downside risks have diminished overall, lower-than-expected inflation poses risks for advanced economies, there is increased financial volatility in emerging market economies, and increases in the cost of capital will likely dampen investment and weigh on growth.
Another observance is that emerging market economy policymakers should adopt measures with several goals:
- To adapt to changing fundamentals
- To facilitate external adjustment
- To further monetary policy tightening
- And to carry out structural reforms
Another key observation that Fed watchers will take is that the IMF expects that global rates likely will rise in the medium term, but only moderately.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
