US Economy Expands at Slower Pace Than Expected in Q2

The US economy grew at a slower pace than expected in Q2, according to new data released by the Commerce Department's Bureau of Economic Analysis. The figure stood at 1.5%, below the estimates of analysts surveyed by Reuters, who predicted it would be around 2.1%. Figures ranged between 0.8% and 2.9%, indicating some uncertainty in the forecast.

Consumer spending remained resilient, however, bouncing back to 3.2% after slowing down to 0.5% in Q1. Tax refunds and higher-income households contributed to this increase.

The Federal Reserve left interest rates unchanged on Wednesday, citing 'elevated uncertainty' due to the conflict in the Middle East as a reason for their decision. They noted that economic activity is expanding at a solid pace despite these risks.

Core inflation remained above the key 2% target, increasing by 0.1% to 3.3%. This may signal ongoing concerns about price growth and inflation risks.