Rising core inflation and foggy tariff risks inject fresh uncertainty into the Federal Reserve and interest rates.

Investors are betting harder on a September Federal Reserve interest rate cut after last month's mild inflation bump, which indicated the pass-through from President Donald Trump's sweeping import duties to goods prices has so far been limited.

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.