Storyline
U.S. Q2 2026 economic slowdown and persistent inflation
The U.S. economy grew at a sluggish 1.5% annual rate in the second quarter of 2026, falling short of expectations and down from 1% growth in Q1, while inflation remained elevated above the Federal Reserve's 2% target at 3.7% year-over-year. The slowdown was driven by factors including rising imports, declining federal government spending, and inventory reductions, prompting the Fed to hold interest rates steady.
Federal ReserveU.S. economyPCE inflation index
2026-08-01
2026-07-31
2026-07-30
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- U.S. economy turns in sluggish 1.5% second-quarter growth and inflation remains above Fed target
- US economy grows a sluggish 1.5% second-quarter with inflation remaining stubbornly high
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