The U.S. economy grew at an annualized rate of 1.5 percent in the second quarter, according to the Commerce Department. This represents a slowdown from the 2.1 percent increase recorded in the first quarter. The inflation-adjusted GDP growth for the three months through June was weaker than expected.
Despite a pickup in consumer spending and solid business investment, the growth rate was hindered by external pressures. The war in the Middle East shook supply chains and energy prices during this period.
Inflation cooled to 3.3 percent, yet it remains above the Federal Reserve's 2 percent target. This persistent inflation has left Americans frustrated with the high cost of living as the midterm elections approach in less than 100 days.