U.S. economy slowed to 1.5% growth rate in Q2; June core inflation at 3.3%

The U.S. economy grew at a 1.5% annual rate in the second quarter, a slowdown from previous quarters. This deceleration is noteworthy as it comes at a time when interest rates are high, and there are concerns about the economy's resilience. The growth rate, while still positive, suggests that the economy is losing some steam.

The June core inflation rate of 3.3% is also significant, particularly for lenders. This measure, which excludes volatile food and energy prices, indicates that inflation is still a concern, although it has been trending downward. For lenders, the inflation picture is crucial as it influences monetary policy decisions, which in turn affect interest rates and borrowing costs. With inflation still above historical norms, lenders may need to adjust their strategies to account for potential future rate changes.

Looking ahead, lenders should watch for signs of how the economy is faring in the second half of the year. The Federal Reserve's next moves on interest rates will be critical, as will be any changes in economic indicators such as job growth, consumer spending, and business investment. Lenders will need to stay vigilant and adapt to changing market conditions to manage risk and capitalize on opportunities in the lending market.

Originally reported by cnbc.com. LendingNews adds analysis for finance & markets readers.