US wholesale inflation accelerated in July by the most in three years, suggesting companies are passing along higher import costs related to tariffs.

In late July Fed Chairman Jerome Powell and the majority of the policy-making Federal Open Market Committee voted to maintain the “wait-and-see” approach to interest rate cuts. The FOMC held the benchmark Federal Funds Rate to a range of 4.25% to 4.5% to monitor the potential impact of tariffs into the U.S. supply chain.

The latest producer price index, which measures the average change in prices paid to producers, jumped .09% in June.

The producer price index, or PPI, surged last month, far outpacing economists' forecasts and suggesting that President Trump's tariffs are starting to significantly drive up the cost of imported goods.

Domestic producers are “raising prices in line with the protection tariffs are providing them,” said a construction economist, a move that could further stoke inflation.

About a quarter of the 3.3% price increase recorded by this month’s producer price index was driven by a spike in wholesale prices for veggies.

President Donald Trump received unpleasant news from a friendly face on Thursday morning. Fox Business Host Maria Bartiromo was live on air when the Producer Price Index report for July was released by the Bureau of Labor Statistics,

US stock futures hovered around the flatline as Wall Street awaited another pulse check on inflation after Tuesday's tepid figures sent rate-cut bets and markets soaring.