U.S. Economy Shows Strong Q2 Growth as Core PCE Inflation Moderates
The U.S. economy demonstrated resilience in the second quarter of 2025, with real GDP expanding by 3.0%, surpassing forecasts of 2.4% and rebounding from a contraction of 0.5% in Q1. Core PCE inflation, the Federal Reserve's preferred gauge, rose 2.5% year-over-year—higher than the anticipated 2.3% but notably slower than the prior quarter's 3.5% pace.
This combination of robust growth and cooling price pressures suggests consumer demand remains sturdy while offering the Fed room to maneuver on monetary policy. Market participants will scrutinize these dynamics for implications on risk assets, including cryptocurrencies, as investors recalibrate expectations around interest rates and economic momentum.