President Donald Trump on Tuesday said consumer prices are lower and that the Federal Reserve should lower interest rates.

President Donald Trump's repeated calls for aggressive rate cuts collided with economic reality Tuesday, as June's rising inflation dynamics offered a win—at least temporarily—for Federal Reserve Chair Jerome Powell's cautious stance.

Inflation picked up steam last month amid early signs that President Trump's tariffs are beginning to have an effect on the prices shoppers see in stores.

It comes after Russell Vought, the director of the Office of Management and Budget, sent a letter to Powell last week asking for answers about the $2.5 billion renovation of the Washington building. Vought said the Fed may have moved ahead with the project without getting approval from the National Capital Planning (NCPC).

For months, Trump has demanded that the Fed lower interest rates, with no success.