US Growth Slows to 1.5%, Inflation Hits New High

US economic growth slowed to an annualized rate of 1.5% in the second quarter, down from 2.1% in Q1. The slowdown has raised fears of stagflation, a rare economic phenomenon last seen in the US in the late 1970s.

The Federal Reserve's decision to hold interest rates steady at 3.50-3.75% has been met with skepticism by some economists, who point to rising inflation as a concern.

Core inflation rose 3.3% annually in June, while overall inflation reached 3.7%, exceeding the Fed's 2% target.