US Economy Hits a Speed Bump: GDP Growth Slows as Fed Pauses with Internal Division

The US economy grew at a 1.5% annualized rate in Q2, a sharp deceleration from the 2.1% pace in Q1 and well below the 2.0% forecast. Consumer spending picked up steam, but it wasn't enough to offset weaker government spending and the fallout from the Iran conflict's inflationary surge.

Headwinds

• Geopolitical Inflation Shock: The Iran war and resulting energy price spikes, with average gasoline hitting $4.22/gallon in Q2, are squeezing household...