Forex
US Economy Slows Amid Ongoing Inflation Worries
The US economy experienced a slowdown in the second quarter of 2026, as inflation continues to pose a challenge for the Federal Reserve's policy outlook.
According to the Bureau of Economic Analysis, real GDP growth rate was at an annualized rate of 2.2% in the second quarter, down from 2.5% in the first quarter.
Consumer spending and business investment remained key drivers of growth, but stronger imports weighed on overall growth.
Federal Reserve Vice Chair Philip Jefferson noted that inflation has been above the Fed's target of 2% for too long, standing at 3.4% in August.
The Federal Reserve Governors pointed to various factors contributing to rising inflation, including tariffs, energy prices, and AI-related investment driving up demand.