This morning at 8:30AM ET, the news hit that second quarter GDP came in at 1.2% for the second quarter. Expectations had been for 2.6% GDP browth The first quarter was revised down to 0.8% growth. While the stock market is mostly shrugging this off, it will change the tune of the Federal Reserve from just two days ago. On Wednesday, the Federal Reserve had hinted they may consider raising interest rates in September and/or December 2016. This came on the back of a better jobs report last month and almost no seen economic impact from Brexit.

Let's face it. The Federal Reserve is never going to raise interest rates again. There is always going to be one thing or another that gives them pause on raising rates. They are so timid and scared of hurting future growth, there will always be a reason they can find. The fact of the matter is, the market knows this and has known this. The main reason the stock market is at all-time highs is becaue the Federal Reserve has depressed interest rates so low for so long, that money has flooded into the stock market as the only place to find yield.

On a side note but very important. Overnight, the Bank of Japan showed signs of wavering on their 'pump money into the system forever' model. While still infusing some, the head Haruhiko Kuroda hinted and pausing as it has done little to nothing to cause inflation in Japan. This could be a major economic shift and an admission of failure that may cause a huge ripple effect around the world.

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Anthony Jackson