U.S. Q2 GDP Growth Slows to 1.5%, Core PCE Inflation Remains Elevated at 3.3%

The U.S. economy grew at a slower-than-expected pace in the second quarter, with Gross Domestic Product (GDP) increasing by 1.5% from April through June. This was below economists' expectations of 1.8% growth and a deceleration from the 2.1% increase in the first quarter. Concurrently, inflation remained above the Federal Reserve's target, with the Personal Consumption Expenditures (PCE) price index, the Fed's preferred measure, showing prices 3.7% higher than a year ago. Excluding food and energy, core PCE inflation rose 0.1% for the month and was 3.3% higher than a year earlier.