Updated

The Trump administration has continued to press the Federal Reserve for lower interest rates, but economists have cautioned that consumers could actually benefit from a rate increase rather than a cut. New reporting shows the coming Fed decision now hinges heavily on two closely watched inflation reports due out in the next two days, with consumer and wholesale prices both trending higher, raising the question of how much further inflation would need to rise before the Fed considered tightening rather than easing. Adding to the uncertainty, bond investors are increasingly focused on rising Treasury yields ahead of the Fed's highly anticipated policy meeting next week, with U.S. small-cap stocks trading below a key technical level as rates climb. The combination of hot inflation data and rising yields complicates the political pressure campaign for lower rates, leaving markets divided over whether the central bank will cut, hold, or even consider a hike.