Federal Reserve Rate Hikes Would Likely Put the Trump Bull Market on Thin Ice

The article argues that while the stock market has performed well during Trump's presidency, a likely Federal Reserve rate hike on September 16, 2026 could threaten the bull market. Elevated inflation driven by Trump's tariff policies, the Iran war, and AI infrastructure demand has prompted the Fed to consider raising rates. Unlike historical rate-hiking cycles that occurred during strong growth, this cycle could be different due to the AI revolution's heavy reliance on debt-financed infrastructure. Higher borrowing costs could slow AI data center expansion and force investors to reassess inflated AI stock valuations, potentially triggering a market downturn.