The US economy has suddenly been thrown into reverse as key GDP indicator flashes stunning negative forecast

Artistic rendering of Benjamin Franklin on a $100 bill behind a graph showing downward movement (Credit: Getty Images)

• The Atlanta Fed's GDP tracker now indicates that the economy is headed for a 1.5% contraction in the first quarter, after showing 2.3% growth just days earlier. That also marks a sharp reversal from the fourth quarter, when GDP expanded by 2.3%. Several economic indicators have been raising alarms as consumers and businesses brace for Trump tariffs and federal job cuts.

The U.S. economy appeared to be on solid footing just a week and a half ago, but that has changed as several indicators are now raising red flags.