(Reuters) – PARIS – The OECD sharply cuts its forecasts, warning that the threat of even more devastating downturns looms if the euro zone does not get to grips with its debt crisis and U.S. lawmakers fail to agree a spending-reduction plan.
In the absence of decisive action from euro zone leaders, the European Central Bank (ECB) alone has the power to contain the bloc’s crisis, the Paris-based Organization for Economic Cooperation and Development said. In the United States, however, the Federal Reserve had little ammunition left.
