Finance

Advance estimates reveal that the U.S. gross domestic product expanded at an annualized rate of 1.5% from April through June, decelerating from the 2.1% growth recorded in the first quarter. While consumer spending and business investment related to artificial intelligence remained robust, a widening trade deficit significantly weighed on the final figures. The expansion landed below the 1.8% to 2.1% growth range that economists had anticipated.

The Federal Reserve's preferred inflation metric, the personal consumption expenditures price index, rose at an annual rate of 3.7% in June, reflecting a moderation from 4.1% in May. Meanwhile, the core PCE index, which strips out volatile food and energy costs, clocked in at 3.3%. Despite the slight dip, headline inflation stays persistently above the central bank's 2% target, keeping policymakers focused on ongoing price pressures after deciding to keep interest rates unchanged at 3.50%-3.75%.

Digital assets experienced a modest upward recovery as investors reacted to the Federal Reserve's decision to maintain current interest rates. Bitcoin managed to reclaim the $64,000 threshold, while Ethereum hovered around $1,920. Cautious investor sentiment remains prominent, however, as low trading volumes and ongoing geopolitical tensions cap broader momentum.