IMF Predicts Long Recovery for Economy

The U.S. economy won’t recover until 2010, predicts the International Monetary Fund.

The fund, which was organized after World Warn II to monitor the world economy, calls the current economic slowdown "the largest financial shock since the Great Depression." Its Chief Economist Simon Johnson says the U.S. economy hobbled by fallout from the housing market collapse will grow at a barely perceptible annual rate of 0.5 percent this year and 0.6 percent in 2009.

The fund applauded the Federal Reserve’s interest rate cuts, and urged that it cut still further. It also suggested using taxpayer money to support the U.S. housing market.

Source: USA Today, David J. Lynch (04/10/2008)