Giant GDP

Rather than weaken in the face of steep increases in the Fed funds rate, the first estimate of 23Q2 GDP accelerated to an annualized seasonally and inflation adjusted rate of 2.4%, up from 2% in 23Q1 and down slightly from 2.6% 22Q4. Business investment and consumer spending led the way. While slowdown worries remain, recession probabilities keep being reduced and the start of the recession keeps being delayed. Good news!