U.S. could already be in recession, according to Atlanta Fed estimate

The U.S. could be in a recession, according to a new estimate from the Federal Reserve Bank of Atlanta.

The Atlanta Fed’s GDPNow tracking model on Friday showed that the economy contracted 2.1% in the second quarter, down precipitously from the previous estimate of minus 1%, released just on Thursday.

The U.S. economy contracted at a rate of 1.6% in the first quarter, and the definition of a recession is two straight quarters of negative growth.

Weak economic data has been consistent throughout the year, from record-high inflation to plummeting home sales.

The central bank has raised interest rates by 1.5% since March in response to high inflation, with another rate hike expected later this month.