Overview

• Real GDP rose at a 3.0% annual rate in Q2 after a 0.5% contraction in the first quarter of 2025.
• Private employers added 104,000 jobs in June while annual wages advanced 4.4%, outpacing inflation that has remained below 3%.
• A sharp drop in imports driven by businesses drawing down tariff-stockpiled inventories accounted for much of the second-quarter growth.
• Fed policymakers resisted calls from President Trump to cut interest rates despite low inflation and solid economic indicators.
• Final sales to private domestic purchasers grew at a 1.2% annual rate in Q2, the weakest pace since 2022.