US gross domestic product grew at an annualized rate of 3% in the second quarter, surpassing expectations of 2.5%. Net trade played a significant role, with imports surging in the first quarter to beat tariffs, then dropping in the second quarter. Consumer spending data showed a mixed outlook, with core GDP slowing to 1.2%.

Federal Reserve Chairman Jay Powell and colleagues maintained interest rates, defying President Trump’s demands. Two governors dissented, hinting at potential rate cuts. Fed officials downgraded the economic outlook, citing moderation in activity. Analysts warn of possible regrets if decisions are made without upcoming employment data.

Read more at Yahoo Finance: Bottom Line Undercuts Hot Quarter for Top-Line US GDP