IMF cuts US growth forecast and fires rate rise warning

Fund's experts raise fears of renewed financial turmoil and suggest first increase in US interest rates should be delayed until 2016

The International Monetary Fund has cut its growth forecast for the US economy and warned the Federal Reserve to wait until next year before embarking on interest rate rises.

In its annual assessment of the world's largest economy, known as an Article IV report, the IMF downgrades its GDP growth forecast for 2015 from 3.1% to 2.5%, amid what it calls "significant uncertainties as to the future resilience of economic growth". It also shaves its forecast for 2016, from 3.1% to 3%.

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