A hotter-than-expected spike in wholesale inflation is throwing buckets of ice water on the frothy expectation of a big, beautiful Federal Reserve interest rate cut next month. Treasury Secretary Scott Bessent earlier this week touted a steep series of interest rate cuts beginning with the Federal Reserve’s September meeting.

Trump has used the renovation project as both a literal and symbolic example of what he has often described as government waste. Speaking to reporters last week, Trump called the construction effort “a disgrace,” and accused Fed officials of overspending at a time when inflation remains high and interest rates are biting into household budgets.