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Good morning and welcome to the Sunday edition of Morning Wire, where we give you the weekend rundown to get ready for the week ahead. Today, California grapples with how to support oil workers amid the state's energy transition, drone footage above Gaza City shows the toll of war, and celebrities pay tribute to actor Diane Keaton who died at age 79.

But first, dismissing or even downplaying inflation poses big risks for the White House and the Federal Reserve.

UP FIRST

People shop for clothing at a Sam's Club in Bentonville, Ark., on Sept. 24. (AP Photo/Charlie Riedel)

Trump says inflation is ‘defeated’ and the Fed has cut rates, yet prices remain too high for many

Inflation has risen in three of the last four months and is slightly higher than it was a year ago, when it helped sink then-Vice President Kamala Harris' presidential campaign. Yet you wouldn't know it from listening to President Donald Trump or even some of the inflation fighters at the Federal Reserve. Dismissing or even downplaying inflation while it is still above the Fed's target of 2% poses big risks for the White House and the Federal Reserve. Read more.

TOP STORIES

Wilfredo Cruz, an oil worker, stands for a photo in the backyard of his home on Sept. 30. (AP Photo/Jae C. Hong)

California oil workers face an uncertain future in the state’s energy transition

Thousands — perhaps tens of thousands — of workers could lose jobs in the coming years as California tries to reduce its reliance on fossil fuels. Energy company Valero said earlier this year it would close a refinery in the Bay Area. California’s leading Democrats are grappling with how to confront lost jobs and high gas prices that the oil industry says are the result of the state’s climate policies. Read more.

Drone footage above Gaza City shows the toll of 2 years of war

New drone footage shows what remains of Gaza City after two years of war. If the ceasefire holds, the toll of devastation will be better understood. Already, the United Nations Satellite Center estimated that 83% of all structures in Gaza City had been destroyed or had some damage by late September. Read more.

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IN OTHER NEWS

Goldie Hawn, from left, Diane Keaton, and Bette Midler appear at the premiere of their film "The First Wives Club" in Sept. 1996. (AP Photo/ Frank Wiese)

READ

Remembering Diane Keaton: Steve Martin, Bette Midler and Goldie Hawn are among stars paying tribute to Diane Keaton

Mideast: Afghanistan says it has killed 58 Pakistani soldiers in overnight border operations

Saatse Boot: Estonia closes road through Russian territory due to presence of Russian troops

Explainer: Pentagon will build a training facility for Qatari pilots in Idaho

Eleanor Holmes Norton: Trump’s intervention in Washington prompts calls for its 18-term House delegate to step down

Tennessee: 16 people died in a blast at a Tennessee explosives factory early Friday, the sheriff says

Mississippi: School homecoming celebrations turn deadly as 8 people are killed in separate shootings

St. Helena Island: 4 people were killed and 20 more were injured in a shooting at a bar in South Carolina, sheriff says

Missing for decades: A long-lost ancient Roman artifact reappears in a New Orleans backyard

Today in History: In 2002, Bali nightclub bombings kill over 200 people

WATCH

AP Explains: As ceasefire holds and hostage releases expected, Trump set to visit Israel, Egypt

South China Sea: Chinese coast guard rams and damages a Philippine vessel

Southern California: Beachgoers watch helicopter spiral out of control, slam into palms

Fungi hunting: Mushroom pickers storm the German forests, turning a hobby into a lifestyle