Trumpflation Is Evolving, and There's a New Twist That Threatens to Sink Stocks

Rising 'Trumpflation' driven by Trump's tariff policies and the Iran war has pushed inflation to a three-year high of 4.2%, prompting the Federal Reserve to raise interest rates. A new inflation twist emerges as the AI infrastructure build-out transforms technology from a deflationary force into an inflationary driver, straining semiconductor and component manufacturing. This creates a dilemma for the Fed: raising rates to combat inflation could undermine the debt-dependent AI boom and the stock market rally it has fueled.