On Tuesday, I explained how the Atlanta and New York Federal Reserve banks had much different views of how the economy was doing.
The New York Fed, in a reversal from earlier this year, thinks the economy is now doing poorly while the Atlanta Fed — also completely changing its earlier view — thinks things are great.
I called it the battle of the two Feds.
Well, on Tuesday the differences between the two Feds’ views narrowed. The New York Fed thinks the economy is growing at a 2.2 percent annual rate in the second quarter.
Meanwhile, the optimistic Atlanta Fed brought its forecast for second-quarter growth down to 3.8 percent, which is a big drop from the 4.1 percent it previously estimated.
Wall Street economists, for the most part, are siding with the lower, New York Fed estimate.



