Trump's Low Interest Rate Dream Slammed by Inflation Reality

President Donald Trump believes that the US should have the lowest interest rates in the world. However, his policies and the AI revolution are making it impossible for the Federal Reserve to lower interest rates.

Over the last 130 years, the stock market has performed well under most presidents. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all seen higher annualized returns under Trump than under most other presidents since the late 1890s.

Trump's policies, including tariffs and the Iran war, are contributing to inflation. The AI infrastructure build-out is also driving up prices due to a supply and demand mismatch. The Fed's preferred inflation metric, PCE, has reached 3.7%, above expectations.