HIKE NOW: U.S. GDP Comes Roaring in at +1.1%

Oh my God, how foolish I’ve been for thinking we’re heading towards recession. All this time, I thought we were barreling downhill towards an alligator infested Disney exhibition. Meanwhile, the economy was ripping tits.

After this super powerful GDP report, those Fed Governors might have to review their dovish stances and consider hiking rates, in order to fend off an overheating economy.

Gross domestic product increased at a 1.1 percent annual rate, rather than the 0.8 percent pace reported last month, the Commerce Department said on Tuesday in its third GDP estimate.
First-quarter GDP growth has now be revised higher by six-tenths of a point since the advance estimate was published in April. The economy grew at a rate of 1.4 percent in the fourth quarter. Economists polled by Reuters had expected first-quarter GDP growth would be revised up to a 1.0 percent rate.

There are signs the economy has regained momentum in the second quarter, with retail sales and home sales rising in both April and May, even though business spending continues to struggle and job growth has slowed.

Federal Reserve Chair Janet Yellen told lawmakers last week that data pointed to “a noticeable step-up” in GDP growth in the second quarter. The Atlanta Federal Reserve is currently estimating second-quarter GDP rising at a 2.6 percent rate.