The IMF judgement on the US recovery: 'Tepid'

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The International Monetary Fund has trimmed its US GDP forecasts and warned the nation's economic recovery remains fragile.

In its latest assessment of the US economy, the IMF said the nation's recovery from the doldrums of 2009 remains "subject to elevated downside risks" such as the eurozone crisis. It warned it is "critical" the US acts to deal with the fiscal cliff and moves to again raise its debt ceiling. President Obama's proposal to cut the federal deficit from 8.5% to 5.5% of GDP over the next fiscal cliff, though not as aggressive as some US politicians would like, remains "too rapid" for the IMF's liking. The Fund said the US should also consider a further extension of emergency unemployment ...

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