The Atlanta Fed’s “Nowcast,” which projects the GDP for each quarter, struck again pegging the GDP growth at the correct level—2.3%. Most Wall Street experts expected somewhere between 2.6%-to-3% growth in the GDP for the second quarter of 2015. The Bureau of Economic Analysis did revise the weak GDP for the first quarter of 2015 up a bit.
*Futures are dropping prior to the opening bell due to concerns that the recovery is not nearly as strong as expected and when compared to the robust increase in the second quarter of last year, seems to be sluggish.
* Experts might interpret the numbers as another reason why the Fed might hold off on raising rates. The economy is barely meeting the GDP growth set as a standard for raising rates. But the Fed is intent on raising rates and while these results might send financial stocks down for a bit, they likely will return quickly once reality sets back in.
* The Atlanta Fed and its economists are now “Superstars” having nailed the GDP number once again, after having taken criticism for nailed the first quarter GDP numbers.
More to come….