The US economy grew at a 1.5% annualized rate in the second quarter of 2026, according to the BEA’s advance estimate, slowing from 2.1% growth in the first quarter. Initial jobless claims for the week ending July 25 came in at 197,000, slightly below the economist consensus of around 200,000. Consumer spending, business investment, and exports all contributed positively to Q2 growth, while reduced government spending acted as a drag on the private-sector momentum. This deceleration from 2.1% to 1.5% puts the Fed in a familiar spot, neither hot enough to justify aggressive tightening nor cold enough to force rapid rate cuts.
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