The new assessment was considerably more pessimistic than the Obama administration's, which predicted last month that the economy would expand by 2.6 percent this year even though it contracted by an annual rate of 2.1 percent in the first quarter.
The economy grew by 0.9 percent during the first half of 2014.
Looking ahead, the CBO said it expected the economy to grow by 3.4 percent over 2015 and 2016, and predicted that the unemployment rate would remain below 6 percent into the future.
Time Warner Cable says outages largely resolved
NEW YORK (AP) — Time Warner Cable said Wednesday that service was largely restored after a problem during routine maintenance caused a nationwide outage of its Internet service for hours.
The company said it is still investigating the cause of the problem, which occurred with its Internet backbone — the paths that local or regional networks connect to in order to carry data long distances.
The problem affected all of Time Warner Cable's markets and started at 4:30 a.m. Eastern, sparking widespread complaints on social networks. Service was largely restored by 6 a.m. The company is working to bring all customers back online.
Time Warner Cable, which is in the process of being bought by rival Comcast Corp. for $45 billion, has about 11.4 million high-speed data subscribers in 29 states. The Federal Communications Commission is reviewing the deal.
IMF chief Lagarde under investigation in France
PARIS (AP) — Christine Lagarde, the chief of the International Monetary Fund, was put under official investigation for negligence in a French corruption probe that dates back to her days as France's finance minister.
After a fourth round of questioning before magistrates on Wednesday, Lagarde said she was returning to her work in Washington, and called the investigation "without basis." She is the third IMF managing director in a decade to face legal troubles.
Lagarde and her former chief of staff have faced questions about their role in an arbitration ruling that handed 400 million euros ($531 million) to a French businessman with a checkered past.
Spiders force Suzuki to recall midsize cars
DETROIT (AP) — Spiders have forced Suzuki to recall more than 19,000 midsize cars.
The automaker says spider webs can clog a fuel vapor vent hose in some 2010 to 2013 Kizashi cars, cutting off air flow. If that happens, it can cause the gas tank to deform, causing cracks, fuel leaks and possible fires.
The recall was prompted by seven reports of the problem. Service centers will replace the vent line with one that has a filter on the end. They'll also replace gas tanks if necessary.
The problem hasn't caused any accidents or injuries in the U.S., Suzuki said in documents posted Wednesday by the National Highway Traffic Safety Administration.
Owners will be notified this month. Those with questions can call Suzuki customer service at (800) 934-0934.
By The Associated Press=
The Dow Jones Industrial average rose 15.31, or 0.1 percent, to 17,122.01. The S&P 500 added 0.10 of a point to 2,000.12. The Nasdaq composite fell 1.02 points to 4,569.62.
Benchmark U.S. crude rose 2 cents to close at $93.88 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, rose 22 cents to close at $102.72 on the ICE Futures exchange in London. Wholesale gasoline fell 1.7 cents to close at $2.746 a gallon. Natural gas rose 4.6 cents to close at $3.957 per 1,000 cubic feet. Heating oil rose 1.6 cents to close at $2.861 a gallon.