Bidenflation Hit Harder, but Trumpflation May Last Longer
The article warns that rising energy costs and tariff-driven price pass-throughs are pushing inflation higher and could force the Fed to keep rates elevated longer. Oil spikes tied to the Iran conflict lifted gasoline to about $4.33/gal and briefly sent crude above $100/barrel (Brent ~$91, WTI ~$87), while Saudi Aramco warned shipments may not normalize until late 2026 or 2027. Producer prices rose sharply (PPI +6% in April; core PPI +4.4%), and headline inflation has climbed to ~3.8% from 3.3% in March. The piece argues that even if peak inflation is lower than 2022’s 9.1%, a more persistent “Trumpflation” driven by tariffs, energy shocks and higher input costs poses stagflation risks for growth, employment and markets. Investors should price in a higher-for-longer rate environment and the potential for prolonged inflationary pressure.