Sluggish Growth and Sticky Inflation Mark Q2 Economic Performance

The US economy grew at a sluggish pace of 1.5% in the second quarter of this year, according to the Commerce Department's latest report. This marks a deceleration from the 2.1% growth rate seen in the first three months of 2026.

Rising imports weighed heavily on growth during this period, which is below economists' expectations. However, consumer spending remained strong, providing some positivity to the overall economic picture.

The Federal Reserve's preferred measure of inflation also grew more slowly last month but still remains above its 2% target. This could have implications for monetary policy and interest rates in the near future.