US economy grows a sluggish 1.5% second-quarter with inflation remaining stubbornly high

The U.S. economy grew 1.5% in Q2 2026, below the 2.1% Q1 rate, as rising imports reduced growth. Consumer spending rose 3.2% annually, AI investment surged, but inflation remained above the Federal Reserve’s 2% target at 3.7%. The Fed held interest rates steady despite dissent from regional presidents.