Producer prices rose sharply in July, federal data shows, dashing President Donald Trump's hopes that the Federal Reserve would cut rates in September as he has been demanding. Trump believes interest rates are needlessly high and has skirted traditional norms on central bank independence to sharply criticize Fed Chair Jerome Powell and the institution for not slashing borrowing costs,

President Trump took to Truth Social Tuesday to once again criticize Federal Reserve Chair Jerome Powell and call for a rate cut after a new Consumer Price Index report showed prices rose less than expected in July.

A key measure of consumer prices in July posted the biggest increase in six months, suggesting inflation is showing some upward pressure from tariffs but perhaps not enough to deter the Federal Reserve from cutting interest rates soon.

Nomura expects the U.S. Federal Reserve to cut interest rates by 25 basis points in September, bringing forward its easing forecast, amid signs of milder U.S. inflation in July and early cracks in the labor market.

Economists at Nomura Holdings Inc. now forecast the Federal Reserve will begin cutting interest rates in September as the labor market weakens and inflation presents less risk.