Atlanta Fed: 1st Quarter Growth fading away

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.

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About Ed Craig

Ed Craig is an independent political commentator. With no allegiance to any party, he analyzes what's going in D.C. and points out what matters. His opinions are his own and not necessarily shared by The Main Steet Examiner, its staff or officers.
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