U.S. grew only 1.5% in Q2, less than the previous quarter

WHAT HAPPENED

The U.S. economy grew at an annual rate of 1.5% in the second quarter, compared to 2.1% in the first. At the same time, prices rose 3.3% in a year, still far from the Fed's 2% target.

WHY IT MATTERS

It’s an uncomfortable mix: companies are selling and hiring more cautiously, but inflation remains high. Construction, cars, mortgages, and credit cards feel the impact of expensive credit first; that’s why the Fed kept rates unchanged and the stock markets fell 2.2%.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, this means a slower growth environment and expensive financing. Companies may slow down hiring, investments, and expansion; additionally, the stock markets may move strongly as the market awaits signals about the rates.