Second Quarter GDP Surprisingly Strong

US GDP was revised higher from an initial estimate of 2.7% to a 3.3% annual rate in the second quarter.  Amazing the things we can accomplish when the government sends almost everyone in America a check for $600.  In fairness, the strong GDP number was also aided by the weak dollar that made US exports cheap relative to our foreign competitors' goods.  As a consequence, even a curmudgeon like myself has to admit that this GDP report is pretty good.  The report indicates that the economy is so healthy that I have to wonder if the folks over at the Fed are even the tiniest bit concerned about fanning the flames of inflation with a 2% fed funds target.  Of course, our friends at the Fed are too terrified about the next shoe to drop in the financial sector to ever pay attention to economic reports anymore.  I would even surmise that these are the Fed's current priorities:

1. Check the open market operation desk to ensure that every dealer met yesterday's margin calls
2. See if any new bank or dealer showed up at the discount window for large amounts of cash
3. Call Fannie and Freddie and see if they need any money
4. Call FDIC and see if they need any money
5. Prepare the next speech and find a new way to say that the coming crash in financial markets should take the edge off of inflation, without sending everyone into a panic