U.S. economy slows as inflation eases and Fed holds rates steady

The government says that the U.S. economy slowed in the latest quarter, growing 1.5%.

And one measure of inflation out Thursday morning shows prices rose in June, but less so compared to May.

This comes a day after the Federal Reserve voted to keep interest rates steady, for now.

But maybe not for long. Financial markets are acting like they expect higher rates this fall as the central bank tries to control stubborn inflation.

NPR's Scott Horsley reports.

This article was originally published on WBUR.org.

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