Rising costs are being closely watched by the Federal Reserve as well as Republicans facing tough midterm elections and millions of Americans struggling with higher prices for everything from groceries to gasoline. Economists expect new data to show to show inflation slipped to 3.4% in July from 3.5% in June. Higher rates could curb inflation also would drag on the overall U.S. economy by making it more expensive for households and businesses to borrow money. Higher rates also would undercut prices for stocks and other investments. Treasury yields have jumped since the war with Iran because of higher oil prices and worries about inflation.