U.S. Growth Slows
Second-quarter GDP cooled while inflation stayed stubbornly high.
Summary
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.
The Coverage
Trump Economic UnderperformanceLeans Left
Trump’s policies and the Iran war have left the U.S. economy weaker than it should be. Growth is only modest, costs are higher, and the economy is not strong enough to justify boasting.
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