Thursday, August 28, 2008

What Recession?

The Bureau of Economic Analysis reported this morning that the GDP rose 3.3% in the 2nd quarter, which is .60% higher than the already revised estimate of 2.7%. And it is 2.4% higher than the 1st quarter (.9% growth).

Yeah, I know it's rough out there. But 3.3% growth? That's stunning. And, honestly, a bit hard to believe.

Mortgage News Daily reports that exports rose 13.2% while imports fell 7.6%. And personal consumption increased 1.7%, above expectations.

Ed Lazear, chairman of the Council of Economic Advisors

(CNBC video)

So will the Fed see this as a change in direction for the economy? Don't rule it out. Reuters reports that the short term interest rate futures are showing an increased chance of a Fed rate hike by the end of the year.

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