September consumer prices rose 3.7% annually, with gasoline up 34% and home heating oil up 74%, and the Nasdaq fell 2.7%. Wholesale prices rose 6.3% over the past 12 months, the largest annual increase since December 2022. Long-term Treasury yields reached their highest level since 2002 and mortgages are above 7%, raising borrowing costs. The author argues that inflation stems largely from the Iran war and Trump’s tariffs, and warns of stagflation and a possible unwinding of an AI-driven economy. He also says Trump’s deal to buy 300,000 tons of Russian diesel equals just half a day of U.S. consumption.
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