US Inflation Holds Steady, Fed Officials Push for Higher Rates Amid Rising Prices

US inflation remains steady at 3.7% in July, according to the latest numbers.

The Personal Consumption Expenditures (PCE) index, which is closely watched by the Federal Reserve, was flat from June, providing little respite for policymakers struggling to balance fighting inflation with preventing economic slowdown.

Some Fed officials are advocating for higher interest rates to cool down prices, which are rising faster than the central bank would like. The main rate has been kept steady in recent months, but another hike is possible if inflation doesn't ease up.

The current trade tensions with Canada have also added to the challenges facing policymakers. Talks broke down on Friday, leading to new tariffs worth $20 billion. Meanwhile, US economic growth remains stuck at 1.5%.