Last week, America was told inflation is better. Also worse. Also, by Friday, core consumer prices came in hot and consumer sentiment fell off a cliff—which is a lot to hand somebody just days before they decide on interest rates.

Highlights from the week of September 4 – September 10, 2026.

Last week, America continued its situationship with the economy: lots of mixed signals, no definitions, with no idea where this is headed.

Last week, America looked at the economy and thought, “Seems straightforward enough.” Strong earnings, healthy hiring and record highs were the easy part. The deeper you looked, the weirder and more technical the story became.

Artificial intelligence is overheating one part of the economy. The Federal Reserve can only cool all of it.

As the market broadens beyond the AI trade, shifting Fed signals and lofty earnings expectations demand more active judgment.

Growth now takes far more investment than it used to. Trade is reorganizing, energy risks are rising, and inflation lingers.

New Fed Chair Kevin Warsh appears ready to give markets fewer signals. That may give the Fed more flexibility, but it also gives every data point more power to move markets.

Elevated coupon income should continue to support senior loan returns in the second half of 2026, but tighter valuations and rising sector dispersion...

The back half of 2026 may hinge on six themes: AI spending, uneven growth, labor supply, sticky inflation, uneasy central banks, and volatile bond markets.