United States economy slows while inflation eases in June

United States GDP slowdown PCE inflation consumer spending Federal Reserve

The United States economy grew at an annualized 1.5 % rate in the second quarter, a slowdown from the 2.1 % pace recorded in the first quarter. Consumer spending rose 0.3 % in June and was up 3.2 % year‑over‑year, while personal income increased 0.2 % month‑over‑month.

The Personal Consumption Expenditures (PCE) price index rose 3.7 % year‑over‑year in June, down from 4.1 % in May, and slipped 0.1 % month‑over‑month – the weakest reading since April 2020. Core PCE, which excludes food and energy, was up 3.3 % year‑over‑year and rose 0.1 % from May. The personal saving rate fell to 2.7 %, the lowest level since June 2022, while average gasoline prices returned above $4 per gallon.

The Federal Reserve left its benchmark overnight rate unchanged in the 3.5 %–3.75 % range. Three Fed officials dissented, favoring a quarter‑point hike. Fed Chair Kevin Warsh reiterated the Fed’s commitment to bring inflation back to its 2 % target.

Entities: Artificial Intelligence investment · Bureau of Economic Analysis · Federal Reserve · Kevin Warsh · Personal Consumption Expenditures (PCE) price index · Personal Consumption Expenditures index · U.S. Commerce Department · U.S. Consumer Spending · U.S. Department of Commerce · U.S. Gross Domestic Product (GDP) · United States

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 2 SOURCES] Brent crude oil prices were just above $90 per barrel in June 2024 amid renewed Middle East hostilities. (Market data cited in Reuters reports)
[● 3 SOURCES] Core PCE inflation (excluding food and energy) rose 0.1% month‑over‑month and 3.3% year‑over‑year in June 2024. (U.S. Commerce Department data)
[○ 1 SOURCE] Three Federal Reserve officials dissented from the majority, favoring a quarter‑point rate hike. (Federal Reserve meeting record)
[● 2 SOURCES] Fed Chair Kevin Warsh said the Fed would not waver in its commitment to bring inflation back to the 2% target. (Remarks at a news conference)
[● 3 SOURCES] The Personal Consumption Expenditures (PCE) price index increased 3.7% year‑over‑year in June 2024. (U.S. Commerce Department data)
[● 2 SOURCES] The Federal Reserve kept its benchmark overnight interest rate unchanged at 3.5%‑3.75% on July 31, 2024. (Federal Reserve policy decision)
[● 2 SOURCES] U.S. gasoline prices rose back above $4 per gallon in June 2024. (Energy price data cited in Reuters reports)
[● 3 SOURCES] The PCE price index fell 0.1% month‑over‑month in June 2024. (U.S. Commerce Department data)
[● 9 SOURCES] Overall PCE price index rose 5.7% year‑over‑year in Q2 2026. (new)
[● 3 SOURCES] Core PCE index increased 0.1% month‑over‑month in June 2026. (new)
[● 9 SOURCES] US real GDP grew at an annualized 1.5% rate in Q2 2026. (US Department of Commerce)
[● 3 SOURCES] Consumer spending increased 3.2% year‑over‑year in Q2 2026. (new)