The inflation gauge the Federal Reserve relies on most to decide whether to raise or lower U.S. interest rates is likely to cement a decision by the central bank to stand pat at its next meeting at the end of July.

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.

Former Federal Reserve Chairs Ben Bernanke and Janet Yellen condemned President Trump’s pressure campaign against its current chief, Jerome Powell, warning it could permanently damage the U.S. economy.

The Bureau of Labor Statistics reported that the consumer price index (CPI), a popular inflation gauge, increased in June to 2.7% on an annual basis as prices rose for consumers.

Rising prices across an array of goods from coffee to audio equipment to home furnishings pulled inflation higher.

Until our central bank changes the way it operates, fights between the Fed and the White House will ever be with us.

Treasury Secretary Scott Bessent said Monday he believes the Federal Reserve system should be reviewed for potentially holding back the US economy, which is “on the cusp” of growth that could equal the dot-com boom seen in the 1990s.

"Toward the end of the year, the housing market may become a bigger deal for inflation than tariffs," Comerica Bank chief economist Bill Adams said.

Austan Goolsbee joins co-hosts Gunjan Banerji and Telis Demos to discuss the economy, inflation, tariffs, trade wars and the Federal Reserve's approach to monetary policy. The Chicago Fed president is a voting member on the Fed's policymaking committee this year.