Framing Analysis
Commerce Department data show U.S. GDP expanded at a 1.5% annual rate in Q2, down from 2.1% in Q1, with consumer spending rising 2.1%, year-over-year prices up 3.7% in June, and the personal savings rate at 2.7%. The Federal Reserve held its benchmark rate steady. Analyses differ on whether reduced government outlays signal fiscal restraint benefits or risks to demand.