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.

On Friday the president repeated his criticism of Powell and said the Fed's policy rate should be 1 per cent, a low level typically used by the Fed to boost a weak economy not, as the Fed is currently attempting to do, temper inflation with tight monetary policy.

“Fed should cut Rates by 3 Points. Very low inflation. One Trillion Dollars a year would be saved!!!,’’ he wrote on his Truth Social platform. With inflation rising slightly and job numbers relatively stable, the CME Group’s closely watched FedWatch Tool forecast a 2.6% chance of an interest rate cut later this month.