Sluggish US Economy Expands 1.5% in Q2 Amid High Inflation

The US economy grew at a sluggish 1.5% pace from April to June, according to the Commerce Department's latest report.

This marks a decline from the 2.1% growth rate in the first three months of 2026 and falls short of economists' expectations.

Despite this slow growth, consumer spending remained strong, increasing at a 3.2% annual clip, up from 0.5% in the January-March period.

The Federal Reserve's preferred measure of inflation also showed some signs of slowing down, growing more slowly last month but remaining above its 2% target.

This news comes as Americans are increasingly frustrated about high living costs ahead of the midterm elections, which are now less than 100 days away.