The U.S. economy may not be strong enough for the Federal Reserve to slow its bond purchases later this year.
That’s the takeaway from economists after the government cut its estimate Wednesday of growth in the January-March quarter to a 1.8 percent annual rate, sharply below its previous estimate of a 2.4 percent rate.
The main reason: Consumers spent less than previously thought.
Most economists think growth will remain low as consumers and businesses continue to adjust to federal spending cuts and higher taxes.
Growth is expected to reach an annual rate of only about 2 percent in the April-June quarter.