The storm system threatening to hit the East Coast just in time for the Fourth of July is even more powerful than forecasters originally predicted.

After picking up strength over the Atlantic Thursday morning, Tropical Storm Arthur developed into a Hurricane, while forecasters now predict that it will become a strong Category 2 as it threatens to brush North Carolina on Independence Day. Initially, it was believed that Hurricane Arthur would be a Category 1, not a Category 2 hurricane, which packs winds of more than 96 mph, reports Fox News.

Arthur, the first tropical storm of the 2014 Atlantic hurricane season, started off as a tropical depression on Tuesday over Miami and the Bahamas. It is projected to strengthen and head north up the Atlantic coast as the July 4th holiday approaches, reports NBC News.

By late Thursday morning, the hurricane's maximum sustained winds were at 90 mph as the storm's outer bands started to reach southern parts of North Carolina. It is expected to affect the North Carolina coast by Thursday night, according to the National Hurricane Center in Miami. As a result, the storm will cause surges of up to 5 feet, damaging waves, high winds, and dangerous rip currents.

"This is no time to put your stupid hat on," North Carolina Gov. Pat McCrory told CNN on Thursday.

"Don't get brave just because you see some good waves out there," he said. "Stay out of the water ... and make sure we don't have to come rescue you and put our emergency workers in jeopardy."

Hurricane warnings and watches were issued in most of the state's coastline while officials issued tropical storm warnings in parts of South Carolina and Virginia.

Authorities also ordered mandatory evacuation for Hatteras Island and a voluntary evacuationfor Ocracoke Island, both in North Carolina's Outer Banks.

However, once the storm passes, forecasters predict beautiful weekend weather for North Carolina.

After hitting the Carolinas are hit with worst of Arthur's wrath, forecasters say the system is likely to head northeast, bringing showers to New York City and Boston. Washington will also likely get some rain.

In New York, there's a 60 percent chance of rain on Friday, but the skies will clear up for the rest of the weekends, possibly in time for fireworks Friday evening.

Maryland is also expected to get rain Thursday night into Friday night, with the worst conditions taking place Friday during the day. However, both Saturday and Sunday look great, reports the Washington Post.

Cape Cod may get rain Thursday through Saturday morning. Scattered rain and thunderstorms will start Thursday afternoon, while the worst conditions will be on Friday night. In addition, there will be wind gusys from 30-35mph on Friday night into Saturday morning, along with possible flooding as well.