Slowing Economy and Elevated Inflation Mark Latest Economic Reports

The US economy has slowed down in the second quarter, growing at a rate of 1.5% according to the Commerce Department's latest reports. This is lower than the first three months of the year and falls on the lower end of economists' expectations.

The Federal Reserve remains focused on achieving its 2% inflation target, but persistent challenges continue to hinder progress. The PCE price index core inflation, which excludes fluctuations in food and energy prices, has risen by 3.3% since last year.

Inflation remains elevated at around double the Fed's target, despite some signs of cooling. Federal Reserve Chair Kevin Warsh emphasized that 'inflation remains elevated relative to the committee's 2% goal,' reiterating the Fed's commitment to delivering price stability.

The ongoing conflict in Iran has driven up energy costs, contributing to economic uncertainty. Many analysts predict the Federal Reserve will hike interest rates in September, but no decision has been made for August.