UPDATE 1-IMF’s Lipsky does not see double-dip U.S. recession

JACKSON HOLE, Wyo, Aug 26 (BestGrowthStock) – A top International
Monetary Fund official said on Thursday strong corporate
profits and moderate income growth should prevent the U.S.
economy from slipping into a new recession.

“The base case remains most likely the continuation of a
moderate recovery, emphasis on the moderate,” John Lipsky, the
IMF’s first deputy managing director, told Reuters Insider on
the sidelines of the Fed’s annual gathering in Jackson Hole.

His remarks come as increasingly weak U.S. data have stoked
concerns about a renewed contraction.

Housing data for July were quite grim, and durable goods
figures sparked fears that gross domestic product could come
dangerously close to stalling in the third quarter.

But Lipsky argued that these factors were not enough to
push the economy into the red.

“We certainly don’t expect some sudden surge in employment
growth, but surely if the expansion continues, as we expect
that it will, it will produce job growth,” Lipksy said.

(Reporting by Pedro Nicolaci da Costa and Dan Burns; Editing
by Bernard Orr)

UPDATE 1-IMF’s Lipsky does not see double-dip U.S. recession