The U.S. economy grew just 1.5% in the second quarter, missing the 1.8% forecast and down from 2.1% in the first quarter, the Commerce Department reported. Core PCE inflation held at 3.3% year-over-year in June while headline PCE inflation reached 3.7%, both remaining well above the Federal Reserve’s 2% target. The central bank voted 9-3 to hold interest rates steady in the 3.5%-3.75% range, with the three dissenting members favoring tighter policy. Personal spending rose 2.1% for the quarter, but the personal savings rate dropped to 2.7%, the lowest in four years, as consumers tapped into savings to maintain expenditures.
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