U.S. Inflation Revised Upward; Economy Grows Only 1.5%

WHAT HAPPENED

The U.S. confirmed an annual growth of 1.5% in the second quarter, but revised inflation upward: prices rose 5.3% and core inflation 3.6%.

WHY IT MATTERS

The economy is advancing slowly while prices continue to rise. That’s why the Fed might keep rates high: mortgages, cars, credit cards, and business loans become more expensive, first affecting housing and consumption.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, the data combines weak growth with expensive credit. This can pressure companies that need to borrow and sectors sensitive to rates, while reducing the margin for the Fed to support the economy soon.