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US Q2 GDP growth slows to 1.5%, inflation remains above Fed target at 3.7%

Market News
30 Jul 2026
CNBC
View Source
Neutral
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US economic growth slowed to 1.5% in Q2, below expectations of 1.8%, signaling weaker momentum after a 2.1% rise in Q1. Inflation, measured by the Fed's preferred personal consumption expenditures (PCE) price index, stayed elevated at 3.7% annually in June, despite a slight monthly decline. Core inflation, excluding food and energy, rose 0.1% monthly and stood at 3.3% yearly, matching forecasts. These figures suggest the economy is growing modestly while inflation remains a concern for the Federal Reserve's policy decisions.

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