After months of scorching prices, things finally appear to be cooling off a bit. The latest US inflation report showed some deceleration from the biggest surge in the cost of living in four decades. But one month doesn’t equal a trend, nor does it mean the Federal Reserve will dramatically change course on interest rate hikes. While a decline in gas prices offered relief to drivers and the labor market remains robust, American purchasing power continues to drop and some underlying price pressures remain—egg prices jumped 47%, and that makes basic items like mayonnaise more costly, too. Some skeptics think taming the inflation beast will take more time and won’t come without a recession. This all suggests to some that, in this baffling economic environment, the Fed and markets are flying somewhat blind. As a result, Jonathan Levin writes in Bloomberg Opinion, “the odds of a policy mistake remain high.”

The number of homes for sale in the US has jumped, and the added inventory gives buyers some room to negotiate. But the good news for them mostly ends there. The same investors who helped propel prices skyward are pulling back as mortgage rates surge, and people are struggling to pay their bills with rental costs at a three-decade high. The Fed created “major distortions” in the housing market, Allison Schrager contends in Bloomberg Opinion. “The impact may be felt for decades.”

Donald Trump’s legal woes are growing. In addition to state and federal criminal investigations tied to his efforts to overturn the 2020 election, as well as civil and criminal probes of his company, the FBI searched his Florida home, executing an unprecedented warrant against a former president, one which cited an ongoing probe under the Espionage Act. At issue were highly classified documents Trump had allegedly taken with him from the White House. The Washington Post reported that some of the files sought were related to nuclear weapons.

China seized on US House Speaker Nancy Pelosi’s visit to Taiwan to increase its military presence around the island democracy, highlighting how a conflict could quickly escalate and shake global supply chains. Beijing meantime is increasingly frustrated with efforts to develop its domestic semiconductor industry. All of this comes as Xi Jinping is expected to seek a third term as president amid a Covid-zero policy that’s deeply unpopular with the public—and with Twitter co-founder Jack Dorsey. 

A Chinese military helicopter flies past Pingtan island, one of mainland China's closest points to Taiwan.  Photographer: Hector Retamal/AFP

Extreme weather fueled by the climate crisis has deluged Seoul with its heaviest rainstorms in 80 years, caused drought across swaths of Europe (even as far as northern England) and imperiled beer production in Mexico. While climate talks between China and the US—the world’s leading polluters—were suspended by Beijing over Pelosi’s Taiwan visit, the US Senate this week for the first time passed a major climate bill.

The most expensive hotel in New York City is basically a party venue for the 0.1%. To ensure the vibe remains exclusive, The Aman New York in Midtown is selling a club membership that costs $200,000. Looking for something more singular? The “Pride and Prejudice” English country estate is on sale for £6 million ($7.3 million).

The Aman’s indoor pool is set within a three-floor, 25,000-square-foot spa. Photographer: Ashok Sinha/Bloomberg

• European GDP data and Uniper’s earnings highlight energy crisis.
• Walmart, US retail earnings will reveal more on price pressures.
• China releases property data; Tencent reports after a tough quarter.
• Britain’s summer of strikes continues with Edinburgh street cleaners.
• The Federal Reserve releases minutes from its July meeting.

Five States May Risk 2024 Election Legitimacy

Across the US, officials in Republican-controlled states have sought to restrict access to voting, citing as justification false claims of 2020 election fraud. In the last two years, some have continued to push conspiracy theories and sought to remove state officials who refused to manufacture fake votes for Donald Trump. Most importantly, they’ve nominated election-denying candidates for Congress and governor—and for offices that certify elections. Bloomberg News analyzed every proposed election law in the US since Biden’s election, and identified the states most at risk of political interference this year and in 2024.

A voting booth at a polling location for an election in Louisville, Kentucky. Photographer: Scotty Perry/Bloomberg

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Bloomberg Technology Summit: The global economy is being redesigned amid surging inflation, the Covid-19 pandemic, Russia’s war on Ukraine and the current bear market. Join Bloomberg Live in London and virtually on Sept. 28 to hear Europe’s business leaders, policymakers, entrepreneurs and investors explain how they’re adapting to this environment and discuss strategies to create business models that foster growth and innovation. Register here.