US Economy Slows Amid Persistent Inflation

The US economy grew at a sluggish 1.5% pace from April to June due to rising imports, according to the Commerce Department.

Despite the slowdown, consumer spending rose, and the Federal Reserve's favored measure of inflation, the PCE price index, increased 3.7% last month from June 2025, down from a 4.1% Year-Over-Year increase in May.

The Commerce Department reported that growth in US gross domestic product (GDP) decelerated from 2.1% in the first three months of 2026 and came in below economists' expectations.

With inflation still above the central bank's 2% target, analysts worry that Federal Reserve Chairman Kevin Warsh is unwilling to deliver a rate hike to control inflation.