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Supporting the resilience of the U.S. economy amid geopolitical tensions

Published July 31, 2026 at 12:05 PM UTC

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Despite the challenges posed by the Middle East conflict, the U.S. economy has demonstrated resilience. The 1.5% growth rate in Q2 2026, while slightly below expectations, reflects the economy's ability to adapt to external shocks. Consumer spending, a major component of GDP, accelerated to a 3.2% annualized pace, up from 0.5% in the previous quarter. This suggests that domestic demand remains robust. Additionally, business investments, particularly in artificial intelligence, continue to drive economic activity. Federal Reserve Chairman Kevin Warsh highlighted the economy's resilience and strong business investment, particularly in AI. These factors indicate that the U.S. economy is well-positioned to navigate current geopolitical challenges.