US Economy Expands at Slowest Pace in Three Quarters

The US economy grew at a sluggish 1.5% pace from April to June, according to the Commerce Department's latest report. This growth rate is slower than the 2.1% expansion in the first quarter of this year.

Rising imports weighed on growth, but consumer spending continued to rise. The Federal Reserve's favored measure of inflation, the PCE price index, grew more slowly last month, increasing by 3.7% from June 2025. However, it remains above the central bank's 2% target.

The Fed chose to leave its benchmark interest rate unchanged for the fifth straight meeting, despite dissenting voices from three regional Fed presidents who wanted to raise rates to combat elevated inflation.