Reply #3: US economy set to slow under weight of oil prices [View All]

[ozymandius]

PARIS (AFP) - US economic growth is set to slow to a growth rate of 3.3 percent next year as it absorbs the impact of soaring oil prices, the OECD said.

The OECD also warned that the dollar could fall because of the US current account deficit and said that the Federal Reserve (news - web sites) did not need to rush to raise interest rates because inflation was tame.

That rate would be sharply slower than the 4.4-percent growth the OECD predicted for this year in its twice yearly economic outlook.

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But the OECD warned that growth expectations faced some risks in the form of "further sustained increases in energy prices, weakness in the labour market, or a sharper than projected rise in long-term interest rates".

http://story.news.yahoo.com/news?tmpl=story&ncid=1203&e=3&u=/afp/20041130/bs_afp/oecd_us_economy_growth_forecast&sid=96001027