The Indian rupee fell on Wednesday as the latest U.S. inflation report showed that tariffs were beginning to feed into prices, weakening bets on rate cuts by the Federal Reserve, which lifted U.S. Treasury yields and the dollar.

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

U.S. inflation climbed to 2.7% in June, marking the highest level since February, driven by rising costs for gas, food, and groceries. This increase r

By Kevin Buckland TOKYO (Reuters) -Asian stock markets were under pressure on Wednesday while the dollar climbed to its firmest against the yen since early April, after U.S. inflation suggested tariffs are pushing prices up,

The latest Consumer Price Index (CPI) data came in hotter than expected, with inflation rising 2.6% in June, higher than the 2.4% seen in May but lower than the 2.7% economists expected. Investors weigh whether President Trump's tariff policy is fueling inflation in the US economy and what it means for the Federal Reserve.

Whether the Federal Reserve cuts rates in September is now looking like a 50/50 call after June’s inflation data. Traders are pricing in a 50.5% chance of the Fed lowering borrowing costs by a quarter point,

A Fed policy rate that low is not typically a sign that the U.S. is the "hottest" country in the world for investment, as Trump has said.

Bank of Cleveland President Beth Hammack said that she does not see an immediate reason to cut interest rates and that the U.S. economy is "really healthy."