China's US Debt Holdings in Canada Surge, Inflation Rises

• US Treasury data shows Canada's holdings of American government debt and federally backed mortgage bonds have soared to nearly $600 billion.
• Wholesale prices in the US increased in September, maintaining the possibility of a rate hike.
• Wholesale inflation in the US reached levels last seen in 2022.
• Wall Street analysts suspect China may be secretly stashing US debt holdings in Canada.
• The US economy is perceived to be more vulnerable than it appears.