Meet the Press   |  December 22, 2013

Slowing economic progress: The reasons why

IMF Managing Director Christine Lagarde talks about the slowing of growth in the U.S. economy and the factors that lie behind it.

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This content comes from Closed Captioning that was broadcast along with this program.

>> unemployment is still high in the united states . if you talk to economists or business leaders, they say there's still a lot of the uncertainty. we don't have the animal spirits that have been unleashed, even though the stock market is performing at record levels. why does the economy still seem to be halting in its recovery?

>> well, first of all, i would observe that the economy has picked up. we forecast further pickup in 2014 . second, most people who invest, who hire will tell you that they are uncertain. they were uncertain. because seeing a budget deal, seeing tapering by the fed, which is a sign of confidence in the real economy , should lead them to invest, to hire and to be more confident into the future of the u.s. economy .

>> how low do you see unemployment going in this country?

>> two things. unemployment will continue to go down. it's around 7%. it's likely to move towards, you know, the high 6 but certainly will continue to move down. most importantly, what we need to see is a higher participation rate . participation means the number of people who actually join the job market and get a job. that number has not moved up significantly, and that's the one we will be looking at. are people getting jobs rather than are people receiving unemployment benefits and registering as unemployed?