New Delhi, May 30 -- As per the recent inflation and economic growth data, the US economy is facing the dual challenge of rising inflation and slowing growth, complicating the Federal Reserve's task of balancing price stability with economic growth.

The first-quarter US gross domestic product (GDP) growth was revised lower to 1.6% year-on-year for Q1 2026 compared to previously ​reported growth of 2%.

On the other hand, US PCE (personal consumption expenditures) inflation, the Fed's preferred gauge, rose 3.8% year-over-year in April, the fastest since May 2023. The US consumer price index (CPI) also came at a three-year high of 3.8% in April.

Rising inflation and slowing economic growth are expected to dominate discussions at the...