The article argues that voters expecting a new Democratic Congress to lower prices may be disappointed, since the main drivers of inflation are the Iran war's impact on energy prices, the AI boom and President Donald Trump's trade policies. Even if Democrats win control of the House and Senate on Nov. 3, they are unlikely to end the war or Trump's tariffs. Consumer prices are up 30 percent since the start of the pandemic, three times the increase of the prior six years, and over the past year they rose more than twice as fast as typical earnings, according to the BLS. Economists surveyed by Bloomberg expect inflation to slow to a 2.4 percent annual rate by fall 2027, but prices would still be rising from already high levels. Goldman Sachs expects leading hyperscalers including Alphabet, Microsoft and Meta to spend a combined $1.2 trillion in 2027, up from around $800 billion this year, while the federal budget deficit of almost $2 trillion also contributes to rising prices.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on adn.com ↗
Keywords
inflationtariffsDonald Trumpbudget
Open a keyword to see other news on the same topic.
Related news
- Alarming budget math unveils historic wreckage of Trump absurd fantasties
According to Atlantic columnist David Frum, Trump's 2024 pledge to eliminate the national debt within one term rested on fantasies: closing a $1.8 trillion deficit with tariffs would have required a 55 per cent tariff on $3.3 trillion of imports with no change in consumer buying. Frum says DOGE's cuts to IRS auditing staff, which the Yale Budget Lab estimates could cost more than $860 billion in revenue over the next decade, worsened the deficit. Debt rose another $10 trillion, with tax cuts reducing revenue by $4.5 trillion, and Frum writes that the Supreme Court confirmed in February 2026 that tariffs are taxes Congress must approve. He concludes Trump has wrecked the country's finances worse than any government in U.S. history.
- Trump says Google once ignored him, now it has to grovel before him
Speaking at a rally in Kentucky on October 17 to back Republican candidates, President Trump said his power in his second term is far greater than in his first, and that Google, which would not take his calls before, now has to bow to him. According to AP, many voters are unhappy with how he uses power, and tariffs and the Iran war have pushed up prices, raising Republican concerns about the midterm elections that threaten their control of both chambers of Congress. Trump promised that if Republicans win both the House and Senate, every adult American would receive $5,000, a program that could cost more than $1,000 billion and worsen the annual deficit of nearly $1,800 billion. On the same day, No Kings protests against Trump took place in many US cities.
- Trump Canada tariffs put dairy , lumber and market access at risk
President Trump’s escalating trade fight with Canada is squeezing its economy, with U.S. tariffs on roughly $20 billion in goods still in place. Steel exports have fallen by roughly half since the tariffs took effect, and lumber exports were about 20% below 2024 levels earlier this year, according to the Bank of Canada. Consumer prices were 3% higher in August than a year earlier, with grocery prices up 2.8% and transportation costs up 7.5%, while goods hit by retaliatory tariffs rose roughly 6% more than unaffected products. David Clement of the Consumer Choice Center said U.S. complaints about Canadian dairy access are valid, though dairy is a small part of a relationship in which more than 99% of trade was duty-free before 2025. Higher energy prices tied to the Iran war add another squeeze ahead of the midterm elections.
- Ken Griffin says Trump plan for America First was always doomed to fail : Most people dont want to live that dream
Citadel CEO Ken Griffin, speaking at the Citadel Securities conference, said tariffs were a 'disaster' that had been pro-inflation, severed global supply chains and made efficient US industrialisation unlikely. He argued that with unemployment at 4.2%, most Americans do not want factory jobs, and advocated AI-enabled robotics to produce essential goods. Moody's chief economist Mark Zandi said native-born unemployment had begun to rise, as native-born workers would require much higher wages to take physically arduous jobs historically held by immigrants. Griffin also announced a $3 billion gift to Carnegie Mellon University Miami in September.
- Trumpflation Is Evolving , and There a New Twist That Threatens to Sink Stocks
AI infrastructure spending has lifted US stock indexes to record highs, but the article argues that Trumpflation, inflation driven by President Trump's tariffs and the Iran war, is becoming entrenched. Annualized inflation rose to a multi-year high of 4.2% in May, prompting a rate hike on Sept. 16. A New York Fed study found tariffs had lifted goods price inflation by 2.9 percentage points by February 2026, while the disruption of about 20 million barrels of crude a day through the Strait of Hormuz sent diesel prices to records. Core inflation now suggests the Iran war is reshaping transport and supply chains, and FOMC policymakers in June flagged the costs of GPUs and HBM from the AI build-out as a new inflation source. That raises the risk of more aggressive rate hikes that could end the AI-driven rally.
- Ken Griffin of Citadel Calls Trump Tariffs on US Allies a Disaster
Ken Griffin, CEO of Citadel, told Bloomberg at the Future of Global Markets Conference in New York that Trump's tariff battles with Canada, Europe and other allies have been a disaster, arguing the tariffs have fueled inflation and disrupted global supply chains. Trump announced an additional 50% tariff on certain Canadian imports on July 20, citing alleged discrimination against US auto, alcohol and dairy exports, and those duties took effect in August. US consumer prices rose 3.7% in September from a year earlier, erasing nearly all of the average worker's hourly wage gains since Trump returned to office. Griffin predicted Republicans would almost certainly lose control of at least one chamber of Congress in the midterms, and called the administration's explanation of the war in Iran poor and its treatment of immigrants disgraceful. He also backed a path for working immigrants to stay in the country.
Related markets
Latest news
- Biotech stocks are surging. How investors can play the new drug innovation boom
Biotech stocks are rallying: the iShares Biotechnology ETF (IBB) is up 24% through October 23, after a 28% gain in 2025, with two dozen of its 233 holdings more than doubling year-to-date. Moderna leads with a 587% surge, though its stock fell 18% after a leak of positive cancer-vaccine trial data. Analysts attribute the rally to clinical trial results, M&A, and technologies such as mRNA, genomics and AI, with about a dozen novel biologics approved by the FDA in 2025 out of 46 approvals and roughly 66 novel drugs in the pipeline. The Moderna–Merck melanoma drug showed a 42% reduction in recurrence or death when combined with Keytruda in Phase 3 and is targeted for FDA submission and launch in 2027. Gene-sequencing firm Illumina more than doubled this year, and 10x Genomics rose more than 300%.
- SpaceX's "Super Intelligence" Segment Just Made the Stock a Must-Own
SpaceX's 'super intelligence' (SI) segment, formerly its AI business, generated $7.56 billion in Q3 revenue, up 830% from $813 million in 2025 and well above $2.56 billion in Q2. Most of the growth came from AI models, including subscription platforms, and infrastructure, which rose from $2.56 billion to $7.02 billion; X ad revenue grew from $454 million to $538 million. The segment's capital expenditures reached $16.4 billion in the quarter. The author views the stock as attractively priced at current levels if growth continues, but argues that such a pace may be hard to sustain, and the stock gave back its roughly 10% post-earnings gain by Thursday.
- Top Blockchains Continue to See Rapid Growth in AI Agent Payments. This Is the 1 Crypto You Need to Buy Right Now.
Chainalysis reported 138.5 million payments on Base using x402, a payment protocol built for AI agents, up from 58,800 transactions as of Q3 2025. Over 87% of x402 transactions were between $0.0001 and $0.10, sizes too small for traditional networks like Visa and Mastercard because of fees and chargeback risk. Solana ranks second in x402 volume, has overtaken Base in daily activity at several points this year, and launched batch settlement, which BlockRunAI says saves more than $20,000 a month in fees. However, TRM Labs counted $52.7 million across 198.9 million settlements since March 2025, with about $25.6 million plausible after removing suspicious activity, so agent payments are not yet driving much economic activity. Solana's stablecoin supply hit a record $17.3 billion in September, and the token trades about 64% below its January 2025 high of $293.
- 5 of the Fastest-Growing Stocks in the Market
The article ranks five fast-growing stocks by latest-quarter revenue growth: Nebius Group (NBIS), CoreWeave (CRWV), AppLovin (APP), Robinhood Markets (HOOD) and IREN (IREN), and examines what investors are paying for that growth. Nebius's second-quarter revenue jumped 454% year over year to $582.3 million, but at a price-to-sales ratio (P/S) of about 46, the highest of the five, its growth is largely funded by cash, customer prepayments and outside financing. CoreWeave's revenue rose 112.5% to around $2.6 billion, backed by a $104 billion revenue backlog, and it trades at 6.0 times sales, but $640 million in net interest expense means its growth relies heavily on debt. AppLovin grew revenue 53% to $1.9 billion, funded by its own profits and cash, at about 16 times sales, while Robinhood's revenue rose 32% to a record $1.3 billion at about 23 times sales, though trading activity can fall sharply when markets cool. IREN's total revenue fell 26.7% to $137.2 million as Bitcoin mining declined, while AI cloud revenue grew tenfold to $70.5 million at about 19 times sales; the article suggests AppLovin could be the safest option because its growth is funded by profits.
- Down Roughly 50% From Its Highs, Is Netflix Stock Finally a Buy?
Netflix (NFLX) shares have fallen roughly 50% from their all-time closing high of $133.91 on June 30, 2025, following the company's third-quarter report. Before the report, Netflix fired its chief content officer and announced its largest layoff since 2022, hiring former Disney executive Peter Rice as it struggled to produce U.S. blockbuster shows. In Q3, revenue rose 12% to $12.87 billion and adjusted EPS jumped 49% to $0.87, above the $0.82 analyst estimate compiled by LSEG. Netflix guided Q4 revenue to $13.4 billion but trimmed full-year revenue to $51.1 billion and cut its ad revenue forecast from $3 billion to $2.7 billion due to a slower ad rollout. The article argues that at a forward P/E of about 17 times 2027 estimates, the valuation now looks attractive.
- Meta Just Unveiled a New Takeover Weapon — But There's a Catch
Meta Platforms plans to create a non-voting Class C share class that it could use to raise capital, pay employees and acquire companies as it spends heavily on AI. Shareholders will receive one Class C share for each Class A and Class B share through a one-time dividend, effective January 19, 2027. According to the SEC filing, the structure preserves CEO Mark Zuckerberg's control: he holds about 60.6% of the vote while owning roughly 13.4% of the company, and he can sell 20% of his new Class C shares right away. The filing flags two drawbacks: Class C shares are expected to trade at a discount to voting stock, which would cause more dilution for existing holders, and they cannot meet the voting-stock requirements for certain tax-deferred deals. Meanwhile, third-quarter capex of $34.91 billion left free cash flow at negative $2.12 billion, and Meta expects 2026 capex of $135 billion to $145 billion.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.