US economy grows 3% in Q2 after earlier contraction
The US economy grew by 3% in the second quarter of 2025, making a solid comeback after shrinking earlier this year.
Most of this boost came from a big drop in imports—30.3%—after businesses rushed to stock up on goods because of new tariffs.
That earlier import spike hurt the numbers last quarter, but things have now evened out.
Consumer spending on the rise
Consumer spending helped too, rising at an annualized rate of 1.4%, though business investment barely budged at just 0.4%.
Economists say the real test is "final sales to private domestic purchasers"—basically, how much Americans are actually buying—which grew by a moderate 1.2%.
Even with some mixed signals, it looks like the economy is showing some resilience.
Fed likely to keep interest rates steady
The Federal Reserve isn't expected to change interest rates anytime soon—they'll likely stay at 4.25%-4.50%.
After cutting rates three times in 2024, officials are pausing as trade uncertainty and uneven growth continue.
The job market remains steady, so while things aren't booming everywhere, there's no sign of trouble right now.
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