Trek FX 7.7 rear tire is rubbing the frame
Three steps:
is it rubbing the entire rotation? If not true your wheel.
Is it rubbing all the way round but just on one side, fix the dish of your wheel.
If it is neither of the above, you need a smaller tyre.

All tyres will expand to a point as you increase the pressure. They will expand less and less as the pressure increases up until the point that they either explode or you destroy the rim.

There is also the question about why you are using more pressure?. Pressures much over 100psi are only faster as the road gets much smoother (dependant on weight of rider and tyre width), that's why they still use pressures towards 200psi on the track, but road pressures have been declining for years.  It takes less energy for a tyre to deform than it does to push the entire bicycle up as it encounters a bump in the road.