US price gauge steady in July; core inflation ticks higher, Fed cautious on rate cuts

The Federal Reserve’s preferred inflation measure held mostly steady in July despite President Donald Trump’s sweeping tariffs, while core inflation ticked up, signalling persistent price pressures.Data from the Commerce Department on Friday showed prices rose 2.6% from a year earlier-- the same pace as in June, AP reported. Excluding food and energy, core prices climbed 2.9%, up from 2.8% the previous month, marking the highest since February.The figures underscore why Fed officials have been hesitant to cut rates. Inflation, though well below the nearly 7% peak of three years ago, continues to run above the central bank’s 2% target.Fed Chair Jerome Powell has indicated that the central bank is likely to lower its benchmark rate at its next meeting, but policymakers are expected to act cautiously, with the number of cuts this year uncertain. Lower rates typically reduce borrowing costs for mortgages, car loans, and business credit.Trump, who has repeatedly pressured Powell for aggressive rate cuts, has criticised him as “Too Late” and a “moron” while insisting there is “no inflation.” Earlier this week, he also attempted to remove Fed governor Lisa Cook in a bid to exert more influence over the central bank.