The official final GDP reading for the first quarter showed the economy shrinking 0.5% to start the year. We’ll see the first draft of the second quarter GDP next week, which is anticipated to come in at a positive 2.4%. Much of the growth will be attributed to an increase in aircraft sales as corporations, airlines, and billionaires sought to lock in prices ahead of the imposed tariffs.

Next week we’ll see reports on Unemployment, Q2 GDP, and Inflation, along with a Fed Meeting.  There’s only a 2.6% chance that the FOMC cuts rates, but we’ll be eager to hear what (if anything) Mr. Powell says that hints of forthcoming policy changes.

Remember that inflation is still the buzzword surrounding interest rate adjustments and price growth will need to move convincingly downward to 2.0% before the hawkish-cost-of-living-police at the Fed change their stance.  So for now, interest rates continue in the range we’ve been at for several months.