US Economic Growth Slows in Second Quarter
The US economy grew at an annual rate of 1.5% during the second quarter, below economists' expectations of 2%. This marked a slowdown from the first quarter's growth of 2.1%, raising concerns about potential stagflation as inflation remains elevated despite slower economic expansion. Inflation data showed mixed signals: The GDP price index rose by 6.2% year over year—well above estimates—and core measures remained high, though slightly lower than previous quarters. Meanwhile, consumer spending increased significantly at 3.2%, outpacing expectations and indicating continued strength in household demand despite broader economic headwinds. The Federal Reserve recently held interest rates steady but faces a complex decision as energy price pressures from the war in Iran continue to influence inflation trends.
Topics: consumer spending Federal Reserve inflation US economy