Economy expanded at 1.5% rate in second quarter of 2026

The US economy expanded at a sluggish 1.5% annualized rate in the second quarter, falling below expectations and the first quarter's 2.1% growth. While consumer spending and business investment remained solid, growth was hindered by rising imports and Middle East conflicts affecting energy prices and supply chains. Although the Federal Reserve's benchmark inflation measure cooled last month, inflation remains above target, potentially pushing the central bank toward an interest rate hike to address persistent concerns.