US Economic Growth Slows to 1.5% in Second Quarter Amid No Rush for Rate Cuts

The US economic growth has slowed down 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 attributed this deceleration to lower government spending, investments, and exports. However, consumer spending was the sole driving force behind the bulk of the growth.

White House Economic Council Director Kevin Hassett downplayed the GDP numbers, saying it's a 'full glass.' He pointed out that final sales were up almost 4%, with a big boom in consumption and investment. The Commerce Department also released June's Personal Consumption Expenditures Price Index, which rose 3.7% over 12 months.

The Federal Reserve's preferred measure of inflation, core PCE, came in at 3.3%, still well above the central bank's 2% target. Despite this, Federal Reserve Chairman Kevin Warsh expressed confidence that he and his colleagues can deliver on their mandate to stabilize prices. He signaled that there is no rush to cut interest rates.

Warsh also announced his commitment to hold regular press conferences this year, a standard practice of his predecessor. The divided vote among the Federal Open Market Committee members, with three committee members voting for a quarter-point increase, did not sway Warsh's stance on interest rates.