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I.M.F. Urges Fed to Delay Raising Interest Rates
The International Monetary Fund said Thursday that the Federal Reserve should wait until next year before raising its benchmark interest rate, citing the stubborn persistence of sluggish inflation.

In an annual review of the United States economy, the I.M.F. said growth had been slower than it expected, and it cut its 2015 forecast to 2.5 percent, from 3.1 percent. While growth is likely to strengthen in the coming months, the I.M.F. said the Fed risked moving too quickly if it started raising rates this year.

The Fed has held rates near zero since December 2008, and officials have said that they are eager to begin the long, slow journey back toward normalcy. But growth continues to disappoint their expectations. The economy shrank at an annual rate of 0.7 percent in the first quarter, according to the latest government estimate. Job growth has weakened. And the Fed’s preferred measure of inflation rose just 1.2 percent during the 12 months though April, the government said this week.

http://www.nytimes.com/2015/06/05/business/economy/imf-recommends-fed-delay-raising-interest-rates.html?_r=0