Inflation picked up in June, a potential sign that companies are starting to pass tariff costs on to consumers. The June reading does little to settle that key debate among Federal Reserve policymakers about how President Trump’s tariffs will affect prices in the coming months. Treasury Secretary Scott Bessent said Tuesday that President Donald Trump has no plan to fire Fed Chair Jerome Powell. And JPMorgan Chase CEO Jamie Dimon described the independence of the Fed as absolutely critical.

The June inflation data is likely to keep Federal Reserve officials cautious, open to cutting interest rates later this year without committing to any course of action.

The consumer-price index wasn’t as mild last month as in May. But a key gauge of underlying prices showed a monthly rate of increase of 0.23%, in line with the typical rise over the last year.

• Inflation Picks Up to 2.7% as Tariffs Start to Seep Into Prices
• Labor Department Relied More on Fuzzier Price Guesses in June Inflation Data

President Trump said Scott Bessent could potentially lead the Federal Reserve but the former hedge-fund manager wasn't his top choice because he was doing a good job as Treasury secretary. "Well he's an option. And he's very good," Trump said Tuesday, adding: "I do like the job he's done. So in that sense, probably not that much of an option."

• Forget TACO. Trump Is Winning His Trade War.

• Canadian manufacturing activity continues to feel the squeeze of higher tariffs, with sales in May falling to the lowest level since the start of 2022. Factory shipments declined 0.9% from the month before to a seasonally adjusted 68.75 billion Canadian dollars, the equivalent of about $50.16 billion, Statistics Canada said Tuesday. (Dow Jones Newswires)
   
• Canada PM Carney Signals U.S. Tariffs May Be Here to Stay

• President Donald Trump said the U.S. will impose a 19% tariff on goods imported to the U.S. from Indonesia, the lowest rate he has set for imports in a flurry of announcements in recent days. “They are going to pay 19%, and we are going to pay nothing,” President Donald Trump told reporters Tuesday. He added that the U.S. would have full access to Indonesia’s markets, “which we’ve never had.” (MarketWatch)

• Leading Economies Must Work Together to Fix Imbalances, or Face Instability, Says BOE’s Bailey

7 a.m.: MBA Weekly Mortgage Applications Survey
8 a.m.: Federal Reserve Bank of Richmond President Thomas Barkin speaks before the Carroll County EDA and Chamber
8:30 a.m.: PPI Data
9:15 a.m.: Industrial Production and Capacity Utilization
9:15 a.m.: FRB Cleveland President Beth Hammack speaks at Cuyahoga County Community College event
10 a.m.: Online Help Wanted Index
10 a.m.: Brookings Institution hosts conversation with Federal Reserve Governor Michael Barr
2 p.m.: U.S. Federal Reserve Beige Book
6:30 p.m.: FRB New York President John Williams speaks at NYABE event

8:30 a.m.: Import & Export Price Indexes
8:30 a.m.: Advance Monthly Sales for Retail & Food Services
8:30 a.m.: Philadelphia Fed Business Outlook Survey
8:30 a.m.: Unemployment Insurance Weekly Claims Report - Initial Claims
10 a.m.: Manufacturing & Trade: Inventories & Sales
10 a.m.: NAHB Housing Market Index
12:45 p.m.: FRB San Francisco President Mary Daly participates in moderated discussion at the Rocky Mountain Economic Summit
2 p.m.: U.S. Securities and Exchange Commission Closed Meeting
4 p.m.: Treasury International Capital Data
4:30 p.m.: Federal Discount Window Borrowings
4:30 p.m.: Foreign Central Bank Holdings
5:15 p.m.: Money Marketeers dinner event with Federal Reserve Governor Christopher Waller

The acceleration in U.S. inflation in June argues for the Federal Reserve to keep interest rates on hold for now, says Bolvin Wealth Management Group's Gina Bolvin says in a note. The 2.7% headline year-on-year figure in June, up from 2.4% in May, "tells us the road back to 2% won't be smooth and gives the Federal Reserve reason to pause before cutting rates," she says. For investors, patience pays, she says. "Stick to diversification, favor quality, and use short-term fixed income to your advantage." —Emese Bartha

There is a "clear consensus" among investors that German fiscal policy will be the primary catalyst for improving European growth, Bank of America's European Fund Manager Survey for July shows. A total of 85% of investors cite German fiscal stimulus as the most likely source for growth, up from 79% in June, the survey shows. A total of 26% of investors also consider eurozone fiscal stimulus to be the biggest positive factor for overall global growth, ahead of those who cite U.S. policy support. — Jessica Fleetham

• President Trump is expected to sign an executive order in the coming days designed to help make private-market investments more available to U.S. retirement plans, according to people familiar with the matter.
• The U.S. bond market sold off on Tuesday in a manner that tends to spell fresh trouble for many stock investors. The selloff in Treasurys sent the yield on the 30-year bond to almost 5.02% and its highest closing level since May 23. (MarketWatch)
• Some of the world’s biggest companies pledged tens of billions of dollars to accelerate the development of artificial intelligence infrastructure in Pennsylvania, the latest splashy investments to draw praise from President Trump.
• China is seeking to further consolidate its global lead over the U.S. in certain industrial areas by making sure crucial technologies won’t easily fall into the hands of foreign rivals. Its latest target: electric-vehicle batteries.

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ’s global team of reporters and editors. This newsletter was compiled by news associate Roshan Fernandez in New York. Send your tips, suggestions and feedback to roshan.fernandez@wsj.com.