The case for a U.S. interest rate cut remains unresolved as Federal Reserve officials head into their policy meeting later this month, with data showing fresh signs of higher inflation and President Donald Trump intensifying his demands for lower borrowing costs.

That’s partly because tariff-sparked inflation rose higher in June than in May year-over-year. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter💰💵 The Federal Open Meeting Committee (FOMC) of the Federal Reserve Bank will vote later this month on how monetary policy will react to the updated inflation data.

Trump has criticized Powell for months because the chair has kept the short-term interest rate the Fed controls at 4.3% this year, after cutting it three times last year. Powell says the Fed wants to see how the economy responds to Trump’s sweeping tariffs on imports, which Powell says could push up inflation.

Donald Trump’s attacks on Federal Reserve Chair Jerome Powell threaten far more than one man’s job—they endanger the entire U.S. and global economy. The Fed was intentionally designed to operate independently of political pressure,