This Week in Economy: Inflation, Oil, Refinery Plans and Tax Proposal
A weekend roundup covers hotter-than-expected September CPI, Brent crude at $110, a planned refinery expansion, a proposed oil-company windfall tax and a warning about higher Treasury yields.
Markets faced a sharp change in tone as inflation data challenged Fed expectations and energy costs kept pressure on households. Here are five stories that shaped the weekend conversation. Hotter Inflation Shakes Up The Fed Outlook A hotter-than-expected September consumer price index disrupted expectations for the Federal Reserve ’s October meeting, which had looked set for a hold. The data lifted expectations for an October rate increase and revived concerns about currency debasement and persistent price pressures.
Read the full article here. Brent Crude Hits $110 As Wars Disrupt Oil Supplies Brent crude hit $110 per barrel on Friday, its highest level since May 20, and closed at $109.86 as the U.S.-Iran and Russia-Ukraine wars keep disrupting global energy supplies. Regular gasoline averaged about $4.33 per gallon and diesel $6.32, nearly $2.67 higher than a year ago. Read the full article here.
Vance Points To Wartime Authority For Texas Refinery Expansion Vice President JD Vance said the Trump administration plans to use wartime authority to expand fuel production at Delek US Holdings Inc. (NYSE: DK ) ’s refinery in Tyler, Texas. The move comes as higher gas prices strain household budgets weeks before the midterms. Read the full article here.
Sanders Targets Oil Companies With A Windfall-Tax Proposal Sen. Bernie Sanders (I-Vt.) called for a windfall profits tax on oil companies after President Donald Trump said the U.S. was benefiting from high oil prices linked to the Iran war. "America is not making ‘a fortune’ off high gas prices, but your Big Oil pals are," Sanders wrote on X.
Read the full article here. 5. Chamath Palihapitiya Warns Of A Bond-Yield Shock Venture capitalist Chamath Palihapitiya said a 10-year Treasury yield of 5.5% to 6% could "run over" businesses dependent on financing spreads, including AI companies. He said the concern is not specific to AI but tied to debt-to-GDP ratios and pressures across Western economies.
Read the full article here. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors. Photo courtesy: Shutterstock