The U.S. economy is expected to fall into its second quarter of negative growth, which means the economy has fallen into recession, according to the Atlanta Fed Bank’s GDPNow model.
This would be the first recession in the U.S. since President Obama took office in 2008.
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“The nowcast of the contribution of the change in real net exports to second-quarter GDP growth increased from [minus] 0.11 percentage points to 0.35 percentage points,” the Atlanta Fed stated.
According to the report, personal expenditures fell to 1.7 percent, downs from 2.7 percent, and real domestic investment tumbled to -13.2 percent, down from 8.1 percent in Q1 2022.
The news comes as Federal Reserve Chairman Jerome Powel made it clear that inflation "scares" him more than a recession, indicating further rate hikes and economic cooling until it is under control.
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Al K. Scott
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