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U.S. producer price index (PPI) inflation has risen to 4 percent, marking its highest level since February 2023. Andrew Lokenauth highlights this sharp increase in inflation alongside a contraction in oil demand.
According to Lokenauth, disruption in the Strait of Hormuz is expected to cause oil demand to fall by 80,000 barrels per day, the largest decrease since the COVID period. These developments signal notable shifts in both inflation and energy markets.
Lokenauth has commented on other shifts in U.S. financial infrastructure in recent months. He previously noted that Venmo and PayPal are now accepted by the U.S. government for contributions to the national debt. This development adds to the evolving options for government payment methods.