Announced this morning, the final reading indicates real GDP grew at an annual rate of 4.2% in the second quarter, as expected. It is the largest increase since the third quarter 2014 and underscores the overall strength of the economy. Also this morning, the core PCE, which excludes food and energy, grew 2.1% for the quarter; slightly higher than expected, but within reason of the Federal Reserve’s targets. It supports the statement by Jerome Powell yesterday of the Federal Reserve sticking with their measured interest rate increases. Hopefully inflation can remain in check amidst a strong economy in the months ahead. In all, equity futures and interest rates are slightly higher this morning heading into the market open.
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