The Federal Reserve of Atlanta is greatly lowering its forecast for first-quarter economic growth.
In January, the Atlanta Fed had predicted 5.4% GDP growth, which would have been the hottest quarter since the Great Recession.
The central bank district has now revised its Q1 prediction to just 1.9% which is in line with the roughly 2% growth the economy has seen for most of the recovery.
Wall Street banks JP Morgan and Goldman Sachs have also reduced their forecasts to 2% or just below.
The first quarter of every year tends to see slower growth as manufacturers chew through excess inventory after Christmas, factories return to full capacity after holiday slowdowns, and consumers recover from holiday spending.Wake up Right! Subscribe to our Morning Briefing and get the news delivered to your inbox before breakfast!