The U.S. economy rebounded in the second quarter of the year, but new data also show signs of some weakness under the headline numbers.

The country's GDP, that's the value of goods and services produced in the economy, grew at an annual rate of 3% in the second quarter,

but the overall rate of growth is just 1.2% for the year, and spending by both consumers and businesses has slowed.

For its part, the Federal Reserve announced it would keep interest rates steady. That's despite

dissents from two members of its rate-setting committee, both of whom were appointed by President

Trump. President Trump has been pressuring Fed Chair Jerome Powell to cut rates, but Powell explained the hesitation today.

If we cut rates too soon, maybe we didn't finish the job with inflation.

There's history is dotted with examples of that.

If you cut too late, then maybe you're doing unnecessary damage to the labor market.

So we're trying to, we're trying to get that timing right.

That timing may be connected to the prospect of more tariffs and whether they could spark

higher inflation. President Trump is threatening to impose new tariffs on dozens of countries

starting Friday. In fact, he said today that India would face tariffs as high as 25%.

To help break down where things stand, we're joined now by Nick Timrose,

chief economics correspondent for the Wall Street Journal. Nick, it's always good to see you. So let's

start with the GDP because there's lots to digest in the report. What are the takeaways?

What does it say about the state of the economy? Well, it tells you that the economy's doing okay. In the first quarter, recall, we had a negative

GDP print, but it was sort of anomalous because it reflected a bunch of inventory front-running,

importing ahead of the tariffs. And so that actually pulled down the headline number. It all

went the other way in the second quarter. But as you noted, instead of the tariffs. And so that actually pulled down the headline number. It all went the other

way in the second quarter. But as you noted in setting this up, if you look at private spending

and investment, it was softer in the second quarter than it was in the first quarter. And it was

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