Moody's lowers 2016 growth forecast for US to 2% vs. 2.3% previous

The latest review on the global growth as well as on the US economy from Moody's Global Credit Research showed that the global growth is expected to remain muted as emerging markets weigh on US, advanced economies.

Key points:

Moody's lowers its growth projection for the US to 2.0% from 2.3% for 2016

Consumption should pick up through the remainder of the year as the labor market continues to improve and wages rise

Nonetheless, the drag on the US economy exerted by the combination of subdued global demand and weak business investment is likely to remain

For G20 advanced markets growth is predicted to slide to 1.7% for 2016 from 1.9% in 2015

Global growth remains uneven and largely weaker than over the past two decades

Global trade remains subdued

Spillovers from emerging markets shocks to financial markets globally have increased substantially

On Fed’s interest rate outlook:

Policy makers will raise rates gradually

Will give investors ample forward guidance as they seek to minimize the negative impact that higher borrowing costs will have on growth and the potential disruption they could cause to global capital markets

On the Chinese economy:

China's economy will slow gradually from 6.9% in 2015 to around 6.3% in 2016

The fears of a Chinese hard landing have eased in recent months with first quarter data suggesting that the economy is stabilizing

However, the government's focus on achieving specific growth targets, could come at a cost to the quality of growth