The economy is in a cautious-growth phase. Inflation at 3.4% is still above the Fed's 2% target, making rate cuts unlikely before Q4. The 10-year yield rising to 4.32% is the week's main signal — long-term borrowing just got more expensive. ISM PMI at 48.7 signals manufacturing is contracting, but consumer spending (+0.4% retail sales) is holding. If you're a business owner: avoid variable-rate debt, review pricing for margin pressure, and be selective on hiring. GDP growth at 2.1% confirms the expansion continues, just more cautiously.