The US Commerce Department released its July personal consumption expenditures report on Friday, offering fresh data on inflation as pressure mounts on the Federal Reserve to cut interest rates. The figures arrived as a political fight over the central bank's independence intensifies.

The PCE index is the Fed's preferred inflation gauge and closely watched by policymakers before the September meeting of the Federal Open Market Committee. Economists at major banks had forecast core inflation holding near 2.8 percent, keeping the timing of any rate cut in doubt.

President Donald Trump has repeatedly demanded that Fed Chair Jerome Powell lower borrowing costs, calling high rates a drag on growth. The administration's attempt to remove Fed Governor Lisa Cook has sharpened concerns among economists about political interference in monetary policy.

Democratic lawmakers, including members of the Senate Banking Committee, have warned that pressuring the Fed risks undermining its credibility with financial markets. Republican allies of the president argued that lower rates would ease costs for households and businesses.

Market analysts said the data would shape expectations for the FOMC's September decision, with futures pricing in a strong chance of a quarter-point cut. Powell has said the central bank would act based on economic data rather than political demands.