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ast month.Across-the-board government spending cuts and higher taxes may
be making businesses more cautious about hiring. And an increase in Social
Security taxes could slow consumer spending. The Federal Reserve said Wednesday
that those policy changes are "restraining economic growth."Still, consumers
are more optimistic that the job market is healing and will deliver
higher pay later this year, according to a survey of April consumer
confidence released this week. And lower gas prices could offset some of
the pinch from the tax increase.The economy grew at an annual rate
of 2.5 percent from January through March, the government said last week.
That was an improvement from the anemic growth of 0.4 percent in
the final three months of last year. Most economists expect growth will
slow in the current quarter to 2 percent or lower.
FILE - In this Saturday Aug. 6, 2011 file photo, the shrouded
body of 12-month-old Liin Muhumed Surow, who died of malnutrition 25 days
after reaching the camp according to her father Mumumed, lies before burial
at UNHCR's Ifo Extension camp, near Dadaab in Kenya close to the
Somali border. Officials in East Africa say a report to be released
this week by two U.S. government-funded famine and food agencies gives the
highest death toll yet from Somalia's 2011 famine, estimating that 260,000
people died - more than double previous estimates. (AP Photo/Jerome Delay,
File)The Associated PressFILE - In this Monday, July 25, 2011 file photo,
an unidentified child reacts as he is weighed at a field hospital
of Medecins Sans Frontieres (Doctors Without Borders) in the town of Dadaab,
Kenya. Officials in East Africa say a report to be released this
week by two U.S. government-funded famine and food agencies gives the highest
death toll yet from Somalia's 2011 famine, estimating that 260,000 people
died - more than double previous estimates. (AP Photo/Schalk van Zuydam,
File)The Associated PressFILE - In this Saturday, July 23, 2011 file photo,
a woman sits with her child at a local hospital to receive
treatment for malnutrition at the border town of Dadaab, Kenya. Officials
in East Africa say a report to be released this week by
two U.S. government-funded famine and food agencies gives the highest death
toll yet from Somalia's 2011 famine, esti
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