Atlanta Fed Predicts Negative Second-Quarter Growth, Indicating Recession Has Begun

Customers at the fruit and vegetable section at a Sainsbury's supermarket in Walthamstow in London on Feb. 13, 2022. Tolga Akmen/AFP via Getty Images

The U.S. economy is expected to contract in the second quarter, the latest estimate from the Federal Reserve Bank of Atlanta shows.

The economy is expected to fall to a negative 1 percent annual rate in the April-to-June period, according to the Atlanta Fed Bank’s GDPNow model. That’s down from an 0.3 percent projection from earlier this week.