Cooling U.S. inflation data and an unexpected drop in July retail sales control-group spending have complicated the Federal Reserve's next move under Kevin Warsh, strengthening the case for leaving rates unchanged in the near term even as officials remain divided. July producer prices were unchanged from the prior month, following a slight July rise in consumer prices after a June decline, and the softer data helped push the U.S. dollar index below 99.6 as investors pared expectations for a September rate increase. The split inside the Fed remains visible. Cleveland Fed President Beth Hammack, one of three dissenters when policymakers held rates steady last month, reiterated that officials should raise rates now to return inflation to the 2% target faster, while Richmond Fed President Thomas Barkin said another hike remained an open question and described the labor market as more fragile than headline data suggest. Warsh has offered no forward guidance since taking over in May, and Trump has continued to demand sharp rate cuts, blaming Warsh's "hostile" colleagues for blocking them. Even after the softer readings, CME's FedWatch tool still showed better than 90% odds of a policy rate increase by year-end, while the Treasury's joint currency intervention with Japanese authorities to support the yen kept the dollar near recent lows.