US Economy Stagnates Amid Sluggish Growth and Soaring Inflation

The US economy is growing, but at a sluggish rate of 1.5% annual growth in the second quarter of 2026.

This marks a decline from the previous quarter's 2.1% and falls short of the typical U.S. rate, let alone the 5% or 6% promised by the Trump administration.

The main contributor to this slow growth is lower government spending, but consumer spending, investment, and exports also played a role.

On the inflation front, while it has fallen slightly in 2025, prices are still above their pre-pandemic levels due to increased energy costs from the war with Iran.

The Federal Reserve is working to bring inflation back down to its target of 2%, which may impact interest rates and borrowing costs for consumers and businesses.