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In FIPS mode:

$ gpg2 -c -o foo
Ohhhh jeeee: cipher 3 not found
fatal error in libgcrypt, file misc.c, line 139, function _gcry_logv: internal error (fatal or bug)
Neúspěšně ukončen (SIGABRT)

the default cipher seems to be CAST5, which is prohibited.  Perhaps gpg could automatically fall back to FIPS-approved cipher algorithms?

As a workaround, it is possible manually specify --cipher-algo AES. ; however, even in that case decryption unnecessarily(?) complains
> DBG: md_enable: algorithm 3 not available

Decryption of CAST5-encrypted data fails similarly:

$ gpg2 --decrypt foo 
gpg: zašifrováno neznámým algoritmem 3
Ohhhh jeeee: cipher 3 not found
fatal error in libgcrypt, file misc.c, line 139, function _gcry_logv: internal error (fatal or bug)
Neúspěšně ukončen (SIGABRT) (core dumped [obraz paměti uložen])

I don't want to diverge from upstream more than necessary. So I agree that the default in FIPS mode should be changed to cipher allowed in the FIPS mode. But I am hesitant to change the abort if the user explicitly asks for CAST5.

Fixed in Fedora gnupg2-2.0.19-6.fc18

Successfully verified.

Old (gnupg2-2.0.19-4.el7):

# gpg2 -c  -o test
gpg: Ohhhh jeeee: ... this is a bug (passphrase.c:118:hash_passphrase)
Aborted

New (gnupg2-2.0.20-1.el7):

# gpg2 -c  -o test
test

This request was resolved in Red Hat Enterprise Linux 7.0.

Contact your manager or support representative in case you have further questions about the request.