Fed Says US Growth Cools to 1.2% as Spending Slows

The Federal Reserve said economic growth in the United States cooled in the first half of 2025, expanding at an annualized 1.2% pace compared with 2.5% for all of last year. In a statement released after its latest policy meeting, the central bank noted that “recent indicators suggest growth of economic activity has moderated.” Chair Jerome Powell attributed the slowdown primarily to weaker consumer spending and continued soft housing-sector activity. While the Fed removed earlier language indicating that uncertainty had diminished, it said labor-market conditions remain solid even as overall economic uncertainty stays elevated.