US Economy Stalls Amid Ongoing Inflation Worries

The US economy expanded at a sluggish 1.5% pace from April to June as rising imports weighed on growth, according to the commerce department's report on Thursday.

The pace of growth decelerated from 2.1% in the first three months of this year and came in below economists' expectations.

Consumer spending rose, but inflation remained above the central bank's target of 2%. The Federal Reserve's preferred measure of inflation, the PCE price index, rose 3.7% last month from June 2025, down from a 4.1% year-over-year increase in May.

The economy has proven surprisingly resilient despite the Iran war and energy prices, with employers adding an average of 92,000 jobs per month this year compared to fewer than 10,000 in 2025.