GDP GROWTH
The nation’s economic growth slowed more than expected in the second quarter and inflation remained elevated, in part, because of energy disruption from the Iran war.

The United States’ gross domestic product increased 1.5% in the second quarter, according to the Commerce Department.  Economists had been looking for a Q2 growth rate of 1.8%, following the 2.1% increase in the first quarter.  But consumer spending — which accounts for about 70% of U.S. economic activity — increased at a 3.2% annual clip, up from 0.5% in the January-March period. READ MORE>

EMPLOYMENT
Job growth has picked up in 2026 with private sector payroll growth averaging 88,000 in the first six months of the year, which is more than three times the pace seen last year and even slightly faster than in 2024, according to the U.S. Bureau of Labor Statistics. The pace of the gains, however, is less than in 2023 and the two years prior to the pandemic.

The number of Americans seeking unemployment benefits for the first time fell in July to the lowest level since 1969.  Initial claims for state jobless benefits dropped by 22,000 — the largest decline in three months — to a seasonally adjusted 187,000 for the week ended July 18, the Labor Department said. READ MORE>

MONETARY POLICY
The Federal Reserve in late July decided to leave its key federal funds rate unchanged in a range between 3.5% and 3.75%, but the vote was divided, 9-3, with opponents seeking to increase the cost of borrowing to reduce inflation.

Presidents of three Federal Reserve regional banks, Beth Hammack of Cleveland, Neel Kashkari of Minneapolis and Lorie Logan of Dallas, expressed concern that inflation has been above the 2% target rate for five years. They sought to raise the federal funds rate by a quarter percent. Fed watchers noted it was the strongest dissent to policy direction in a decade. READ MORE>

GLOBAL ECONOMY
Despite suffering the largest oil supply loss on record, the economic shock from the war against Iran and closure of the Strait of Hormuz since March 4, so far, has been less than expected.

The International Monetary Fund projects global growth to hit 3% in 2026 and 3.4% in 2027. The rates of growth were down from the 3.5% average for 2024-25 but broadly unchanged on a cumulative basis from its earlier forecasts. READ MORE>