US Economy Expands at Sluggish Pace Amid High Inflation

The US economy grew at a sluggish pace of 1.5% in the second quarter, from April to June, as rising imports weighed on growth. This marks a deceleration from the 2.1% growth rate seen in the first three months of 2026, according to data released by the Commerce Department on Thursday.

Despite the slow pace, consumers continued to spend, which helped cushion the impact of inflation. The Federal Reserve's preferred measure of inflation grew more slowly last month, but remained above the central bank's 2% target.

The sluggish growth rate comes at a time when Americans are frustrated about high living costs ahead of the midterm elections, less than 100 days away.