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Fed May Raise Rates Despite Trump’s Sub-1% Demand

9/8/2026

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Story summary
  • President Donald Trump demands interest rates stay below 1% despite rising inflation.
  • In July 2026 his administration imposed 10%-12.5% tariffs on imports from over 80 countries.
  • Trump-approved war against Iran forced the Strait of Hormuz closure, cutting about one-fifth of global oil flow.
  • AI data-center build-out faces supply shortages, giving providers pricing power that fuels broader inflation.
  • Fed Chair Kevin Warsh may raise rates to tame “Trumpflation,” despite Trump’s opposition.