Federal Reserve Chair Waller, during his first semiannual monetary policy testimony before the Senate, reaffirmed the central bank’s decision-making independence, denied that U.S. President Trump had attempted to interfere with the Fed, and clarified that price increases driven by AI infrastructure investment do not necessarily constitute inflation. Waller acknowledged that June CPI and PPI data showed improvement, but noted that inflation indicators do not perfectly reflect underlying inflationary conditions. He stated that the AI boom has already driven up prices for chips and other components, and prices could rise further over the next 12 months. Waller added that he has 'repeatedly' told Trump that he is independent, and that Trump has never asked him to do anything improper. In an interview, Trump stated it would be better for the Federal Reserve to pause its rate moves than to raise rates, reiterated his desire for lower interest rates, and projected that inflation by year-end would be lower than it is now. Trump said oil prices would fall to $55 per barrel once the situation with Iran stabilizes. The Federal Reserve's latest Beige Book indicated that U.S. economic activity improved modestly from late May through June, with 11 out of the 12 Fed districts reporting slight to modest growth.