The Commerce Department estimates that U.S. gross domestic product (GDP, the widest measure of overall economic activity) was near stagnant in the first three months of 2015, growing at only a 0.2 percent annualized rate. This is a clear deceleration from the 2.2 percent growth rate in the previous quarter. Final sales (GDP minus the volatile inventory components of GDP) actually declined in the first quarter.

Most of this deceleration is likely transitory—due in part to particularly bad weather in the first quarter. Growth in the rest of 2015 will most likely be faster than previously projected, as the economy bounces back from this weak start to the year. Yet data on GDP in recent years confirms that the U.S. economy has not reached escape velocity—growth rates have not broken past the 2-2.5 pace that normally is associated with rapid declines in economic slack. Because growth has been steady for years, it might be tempting for some policymakers to shrug their shoulders and declare that this is the “new normal” and the best we can do. The economic evidence clearly suggests otherwise—this economy still needs active measures to boost demand to achieve a full recovery. At a minimum, this means the Federal Reserve should put off interest rate increases for the rest of 2015.