International Monetary Fund Raises Expectations for US Economy

(MENAFN- Arab Times) The International Monetary Fund (IMF) will raise its growth forecast for the US economy in 2014, IMF chief Christine Lagarde said Sunday. Speaking on NBC television, Lagarde cited the recent budget deal reached by Congress that reduced sequestration , the automatic cuts to the federal budget that amounted to 1 trillion dollars, the decrease in US unemployment and actions by the US Central Bank as reasons for the IMF's rosier outlook for the US economy The US Federal Reserve announced that in January it will begin tapering its efforts to spur growth through purchasing debt, which is seen as a sign of confidence in the economy The IMF in October forecast US growth of 2.6% in 2014 The current year saw growth of 1.6%.