U.S. Growth Slows

The U.S. economy grew at a 1.5% annualized rate in the second quarter of 2026, the Commerce Department’s advance estimate showed, down from 2.1% in the first quarter and below economists’ 2.1% forecast. Rising imports subtracted from GDP, while consumer spending and business investment continued to support output. The Fed’s preferred inflation gauge, the personal consumption expenditures price index, fell 0.1% in June and eased to 3.7% annually from 4.1% in May. Core PCE inflation was 3.3%, still above the Fed’s 2% target, complicating rate decisions.