GALLOPING GDP

The first estimate for 24Q2 real GDP came in at a surprisingly strong 2.8% annualized rate, well above expectations of, at most, 2%, and well up from 1.4% in 24Q1. The result was due to rising inventories, strong consumer spending on goods, a rise in government spending, and weak residential construction. This reading is unlikely to alter expectations of no Fed rate change on 7/31, or a cut on 9/18.