US GDP Grows 1.5% in Q2, Missing 2.1% Forecast

The US Bureau of Economic Analysis reported that gross domestic product grew at an annualized pace of 1.5% in the second quarter, according to its advance estimate. That marks a slowdown from the 2.1% expansion recorded in Q1 and fell short of economists’ forecast for a 2.1% gain.

The softer-than-expected reading may fuel expectations that the Federal Reserve is nearing the end of its tightening cycle, as economic momentum moderates. The data comes ahead of the Fed’s next policy decision, where rate setters will weigh growth and inflation signals.