Consumer prices posted the biggest increase in June in five months and are likely to keep the Federal Reserve from cutting interest rates soon, but there only scattered signs of tariff-related inflation.

The Federal Reserve will likely be able to start cutting short-term borrowing costs by September, traders continued to bet on Tuesday, after a government report showed a widely expected increase in consumer prices last month.

JPMorgan Chase CEO Jamie Dimon went to bat Tuesday for the Federal Reserve and its chair, Jerome Powell, as the White House pondered ousting him over disagreements about the path of short-term

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Donald Trump said on Tuesday that consumer prices were low and the Federal Reserve should bring down interest rates now.

The Consumer Price Index in June rose 2.7% on an annual basis, a sign inflation around the U.S. is creeping up after declining earlier this year.

“While any tariff induced boost to inflation is likely to be short-lived, with higher tariffs being announced it would be wise for the Fed to remain on the sidelines for a few more months at least,” said Seema Shah, chief global strategist at Principal Asset Management.

Economic experts say the Federal Reserve is unlikely to cut rates despite President Donald Trump's demands due to uncertainty from tariff hikes.

June's inflation report will be looked at not so much for what the headline numbers show than what's in the underlying data.