The underlying condition of the US economy is improving, according to the International Monetary Fund (IMF). However, the IMF added that the recovery from recession has so far been "tepid". In its regular assessment of the economy, the IMF said the US still faces "powerful headwinds". But it noted gains on stock markets and in house prices, and predicted that economic growth should gradually accelerate over the next year. The IMF said the expiration of the payroll tax cut earlier this year and the impact of government spending cuts (through the so-called sequester) were "weighing significantly on growth this year". (full story)