On Sept. 16, the Fed unanimously raised interest rates by 25 basis points, to 3.75%-4.00%; inflation had remained above its 2% target for 66 consecutive months. The article attributes ongoing price pressure to tariffs, the Iran conflict and AI-infrastructure demand.
According to the article, the Trump administration reinstated tariffs of 10%-12.5% on more than 80 countries in late July, after the Supreme Court invalidated its earlier “Liberation Day” tariffs in February. It also says Iran’s closure of the Strait of Hormuz to most commercial vessels after U.S. military action on Feb. 28 has pushed up fuel prices, while higher petroleum-based product, shipping and supply-chain costs may reach consumers.
The article says AI data-center demand for GPUs, high-bandwidth memory, servers and storage has outstripped supply, enabling higher prices that businesses may pass on to consumers. It warns that several more rate increases could slow debt-backed AI investment, pressure stock valuations and risk a recession; leaving inflation unchecked could keep price pressures elevated.
