In a Truth Social post, Trump wrote:

“Interest Rates in the United States should be 1%, or less”

He argued that America’s credit standing and investment growth justified cheaper borrowing, ending with a demand to lower rates “AND FAST!”

The Fed Is Moving the Other Way

The Fed raised its benchmark rate by 0.25 percentage points to 3.75%–4.00% on September 16, with all 12 voting members supporting the decision, according to its official statement.

Related: Fed Raises Rates for the First Time Since 2023 as Inflation Persists

Chair Kevin Warsh defended the move by warning that inflation had remained too high for too long. The decision highlights the widening gap between Trump’s preference for cheaper credit and the Fed’s effort to bring inflation back to 2%, as the Financial Times reported.

Related: Warsh Says Inflation Is “Too High” as Fed Raises Rates

Trump’s demand is a political position, not a change in policy. For borrowers, the Fed’s higher rate remains in place, and there is no announced path to the 1% level he wants.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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In a September 14 social media post, Trump called predictions of AI destroying humanity a “hoax” and described opposition to AI and data centres as a “SICK conspiracy”, the Associated Press reported. He also criticised Anthropic CEO Dario Amodei, who has urged stronger safeguards.

What AI Leaders Are Asking For

Amodei’s proposal includes independent evaluators inside AI labs, shared safety standards and international coordination to give researchers time to manage increasingly powerful systems.

Sam Altman backed outside evaluators with employee-level access at OpenAI, while Elon Musk endorsed Amodei’s warning, according to Reuters.

Washington Opposes a Pause

House Speaker Mike Johnson reinforced Trump’s position on September 15, saying a development moratorium would threaten America’s lead over China.

However, Johnson supported independent audits and greater transparency. He said leading AI executives would be invited to the White House within a week to discuss safeguards, Reuters reported.

A government-backed AI pause faces strong political resistance. The planned White House meeting could show whether companies and officials can agree on practical safety checks while development continues.

Related: Top AI Leaders Call for Slowing Down AI Development

The post Trump Rejects AI Slowdown Calls, Citing Competition With China first appeared on Finblog.

The 81-page report, published by the German Institute for International and Security Affairs (SWP), argues that the Pax Americana that helped guarantee European security after World War II is coming to an end. Its central conclusion is that Europe can no longer assume the United States will remain a dependable security and political partner.

The report says this shift did not begin entirely with Donald Trump, but his second presidency has accelerated it dramatically. SWP argues that Europe now needs a long-term strategy to reduce its dependence on Washington, particularly in defence, technology, trade and international finance.

Related: America’s absence is inviting the war Europe fears most

Europe Faces a Five-to-10-Year Transition

According to SWP, becoming more independent from the US cannot happen quickly.

Europe would need a significant increase in resources over the next five to 10 years to strengthen its military capabilities, technological resilience and ability to make strategic decisions independently.

During that transition, Europe would remain vulnerable because it still depends heavily on the US, particularly for security and defence.

SWP therefore proposes a flexible strategy built around three options: working with Washington where cooperation remains necessary, acting without Washington where Europe has sufficient capacity, and potentially acting against Washington when European interests fundamentally conflict with US policy.

European Defence Is the Biggest Weakness

Defence is where Europe’s dependence on America is most significant.

For the foreseeable future, SWP expects NATO to remain central to European security. But it argues that Europe should accelerate the Europeanisation of NATO, building military capabilities that could function with much less American support.

That strategy should ultimately be compatible with a “Plan B” under which European countries either assume much greater control of NATO or establish a credible European defence structure outside the alliance if necessary.

The challenge extends beyond weapons.

The US continues to provide important intelligence, logistics and NATO command capabilities, while Europe has increasingly taken on more of the financial burden of supporting Ukraine.

Technology Could Become Another Pressure Point

Europe’s dependence on American technology represents another major vulnerability.

The report specifically examines what could happen if Washington used European reliance on US technology companies and infrastructure as leverage in political or economic negotiations.

SWP argues that Germany and the EU should build greater technological resilience and independent capabilities so that Washington cannot easily use those dependencies to extract concessions.

The same logic applies to international financial transactions and other strategically important infrastructure.

Reducing these dependencies would also strengthen Europe’s negotiating position even when relations with Washington remain cooperative.

Three Possible Futures for US-Europe Relations

SWP identifies three broad possibilities for the future of the transatlantic relationship: adaptation, transformation or breakdown.

Under adaptation, Europe would largely accept Washington’s demands because it remains too dependent on US security and technology to resist.

Transformation would preserve the relationship but fundamentally change it. Europe would assume greater responsibility for its own security while Washington steps back from its traditional leadership role.

The most extreme scenario is a breakdown, where disagreements over security, trade, technology, democratic values and international institutions become too significant to manage.

SWP does not argue that this outcome is inevitable. Instead, it says Europe should build enough independent capacity to ensure it has options under all three scenarios.

Europe May Need New Global Partners

The shift could also reshape Europe’s relationships beyond the US.

SWP examines how Europe could pursue policies toward Russia, Ukraine, China and the Middle East with less dependence on Washington.

It also argues that the EU should continue developing its soft power and seek new partnerships in areas including trade, climate policy, energy, development cooperation, international law and the United Nations.

The study sees particularly significant differences between Trump’s preference for unilateral action and rapid deal-making and the EU’s traditional emphasis on multilateral institutions, international law and longer-term cooperation.

The Transatlantic Relationship Is Not Necessarily Over

Despite its strong conclusions, the report does not recommend simply abandoning the United States.

The US and Europe remain deeply connected economically, militarily and technologically, and breaking those ties quickly would carry enormous costs.

Instead, SWP’s strategy is essentially one of risk reduction.

Europe should continue cooperating with Washington where that serves its interests, while simultaneously developing the military, technological, economic and diplomatic capabilities needed to operate independently.

Bottom line: SWP’s message is that Europe’s relationship with America is moving from dependence toward strategic flexibility. The EU may still need Washington for years, especially for defence, but it should prepare for a world in which American support can no longer be taken for granted. That means spending more on European defence, reducing technology dependencies and developing partnerships that give Europe greater freedom to act on its own.

Source: German Institute for International and Security Affairs (SWP), Research Paper 2026/RP 05

The post Europe Can No Longer Rely on the US, German Think Tank Warns first appeared on Finblog.

Treasury Secretary Scott Bessent said Washington is preparing what he described as the “toughest sanctions in history,” targeting Iran’s oil revenues and financial networks.

China is particularly important because it buys more than 80% of Iran’s shipped oil, providing Tehran with a major source of revenue. Beijing has rejected Washington’s sanctions strategy and continues to call for diplomacy instead.

The US is also warning other countries and companies that continuing significant business with Iran could bring economic consequences, raising the risk of broader trade tensions.

Investor takeaway: The biggest market risk remains oil. If Washington succeeds in significantly reducing Iranian exports, global supply could tighten and keep oil prices volatile, especially while uncertainty around the Strait of Hormuz continues.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Trump announces ‘most crushing economic operation ever’ against Iran

The post US Pressures Allies and China to Join Iran Sanctions Campaign first appeared on Finblog.

Trump said the campaign would seek to further isolate Iran financially and warned that countries, banks and companies continuing to do business with Tehran could also face serious economic consequences. The administration is expected to target Iranian oil sales, financial transactions and networks used to bypass existing sanctions.

The move follows stalled efforts to reach a diplomatic agreement. Washington has been pushing Iran to abandon its nuclear program and ease restrictions around the Strait of Hormuz, while Tehran has resisted US conditions.

Treasury Secretary Scott Bessent said the US is preparing what he called the toughest sanctions ever imposed on Iran, with more details expected. China could become particularly important because it buys more than 80% of Iran’s shipped oil, according to Reuters. Beijing has rejected Washington’s sanctions approach and called for diplomacy instead.

Iran has dismissed Trump’s threats, accusing Washington of using economic pressure instead of serious negotiations. Tehran has already spent decades operating under US sanctions, raising questions about how much additional pressure the new campaign can create.

Investor takeaway: The biggest market risk is energy. Tougher restrictions on Iranian oil exports, especially if they affect buyers such as China, could tighten global supply and keep oil prices volatile. The possibility of further disruption around the Strait of Hormuz adds another layer of uncertainty.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Trump announces ‘most crushing economic operation ever’ against Iran first appeared on Finblog.

The tariffs were scheduled to take effect on August 19 and would have covered around $20 billion worth of Canadian imports, including products that normally receive preferential treatment under the USMCA trade agreement.

Trump announced a three-day pause, saying the two countries had reached a deal that was still being finalized. Canadian Prime Minister Mark Carney was more cautious, saying the negotiations had made “substantial progress” but that important work remained.

Several major trade issues are still being negotiated, including:

• Lowering US tariffs on Canadian vehicles from 25% to 15%
• Canada’s restrictions on US dairy and alcohol
• How much US or North American content should qualify vehicles for tariff reductions
• Greater market access for American companies and closer cooperation on digital trade

The dispute has become a major test for Carney, who has been trying to protect Canada’s access to its largest export market while also reducing the country’s economic dependence on the United States.

The temporary relief was welcomed by markets. The Canadian dollar climbed to a two-and-a-half-month high on Wednesday as investors became more optimistic that a broader trade confrontation could be avoided.

Investor takeaway: The immediate risk of a major US-Canada tariff escalation has eased, but the deal is not finished. Autos, dairy and rules governing North American manufacturing remain key issues, meaning trade uncertainty could quickly return if negotiations break down.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Tariffs on Hold as Trump Claims Deal With Canada Is Near first appeared on Finblog.

Sen. Elizabeth Warren and Rep. Robert Garcia asked Trump to disclose the financial institutions and money managers responsible for his trades. They are also working on legislation that would ban sitting presidents from trading individual stocks.

Trump’s financial disclosures show significant activity. During the first three months of 2026, he or his investment advisers reported:

• More than 3,700 trades
• At least $220 million in stock and bond transactions
• $100,000 of AMD shares and up to $1 million of Nvidia shares purchased shortly before the administration eased restrictions on chip sales to China
• Several Palantir trades during a period when Trump publicly praised the company. The US government later announced a $300 million deal with Palantir.

The lawmakers have not established that Trump personally directed those trades or violated the law. The Trump Organization says his investments are held in discretionary accounts controlled independently by third-party financial institutions, with Trump and his family having no role in individual investment decisions.

The scrutiny comes as Trump’s wealth has grown significantly. Forbes estimates he earned $2.4 billion in 2025, up from $760 million in 2024, with about $1.4 billion coming from cryptocurrency ventures.

Investor takeaway: The controversy could bring greater scrutiny of financial conflicts involving senior US officials, particularly if Congress moves forward with restrictions on presidential stock trading.

Related: Donald Trump accused of profiting from presidency as crypto ventures rake in hundreds of millions

The post Democrats demand answers from Trump about his stock trades first appeared on Finblog.

Speaking in Las Vegas, Trump said oil prices had recently stabilised and repeated his prediction that they would eventually fall once the Iran conflict ends. But he then suggested prices might first need to rise again, without explaining what action he was referring to.

The comments come after months of volatility in energy markets. The Iran war has pushed oil and US gasoline prices higher, even as Trump has argued that higher crude prices can also benefit the United States because it is the world’s largest oil producer.

Trump has repeatedly said he expects oil prices to decline once the conflict is resolved, although that forecast has yet to fully materialise. His latest remarks leave uncertainty over whether the administration is considering new energy measures or was simply commenting on possible market moves.

Investor takeaway: Trump’s comments add another layer of uncertainty to an already volatile oil market. For investors, developments in Iran and any clarification of US energy policy remain the main factors to watch.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Trump Says US ‘May Have To’ Push Oil Prices Higher Again first appeared on Finblog.

According to The New York Times, the recent surge in Treasury yields reflects growing investor caution despite continued pressure from the White House for easier monetary policy. Long-term borrowing costs have climbed even as Trump has argued that lower interest rates would support economic growth and reduce financing costs for households and businesses.

The benchmark 10-year Treasury yield has risen to around 4.7%, its highest level in more than a year, while 30-year Treasury yields have moved above 5%. Because Treasury yields serve as a benchmark for mortgages, corporate borrowing and consumer loans, higher yields are tightening financial conditions across the economy.

Several factors are contributing to the bond selloff:

• Persistent inflation concerns, fueled in part by higher oil prices.
• Growing federal borrowing needs and rising budget deficits.
• Stronger-than-expected economic data, reducing expectations for aggressive interest-rate cuts.
• Geopolitical tensions, including the conflict involving Iran, which have added to inflation risks.

Higher Treasury yields also complicate the Federal Reserve’s policy decisions. Markets have increased expectations that the Fed could keep interest rates elevated for longer—or even consider additional tightening if inflation remains stubborn.

For investors, the bond market is becoming an increasingly important signal. Rising yields can weigh on equity valuations, particularly high-growth technology companies, while increasing borrowing costs for consumers and businesses. At the same time, sectors such as financials may benefit from a higher-rate environment if elevated yields persist.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Crucial Interest Rate Jumps to Highest Level of Trump’s Second Term first appeared on Finblog.

In a post on Truth Social, Trump said he had decided to replace the proposed fee with “Trade and Investment Deals” that Gulf states would make in the United States. He described the expected investments as “MASSIVE”, adding that they would also benefit the Gulf countries’ long-term economic growth.

The decision marks a sharp reversal from the previous day’s announcement, when Trump proposed charging ships using the strategic waterway as part of a broader US security effort in the region. The proposal had raised concerns among shipping companies and energy markets because the Strait of Hormuz carries roughly 20% of the world’s seaborne oil trade.

While the fee has been scrapped, uncertainty over the Middle East remains high. Investors continue to monitor developments in the region, as any disruption to shipping through Hormuz could quickly affect oil prices, inflation, and global financial markets.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Trump reverses course on a 20% fee on Strait of Hormuz cargo after pushback first appeared on Finblog.