US Economic Growth Slows to 1.5% in Second Quarter

The US economic growth slowed to 1.5% in the second quarter, falling short of expectations and marking a drop from the first quarter's 2.1% growth.

The Commerce Department's advanced reading of gross domestic product (GDP) was driven by lower government spending, investments, and exports.

Despite the slowdown, White House Economic Council Director Kevin Hassett said that GDP should not be seen as a negative indicator, citing a 4% increase in final sales and a big boom in consumption and investment.

The Federal Reserve's preferred measure of inflation, the Personal Consumption Expenditures Price Index (PCE), rose 3.7% over 12 months, with core PCE coming in at 3.3%, still above the Fed's 2% target.