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Diane Swonk, industry influencer, highlights concerns about the reliability of U.S. inflation data due to the recent six-week government shutdown. According to Swonk, much of the October Consumer Price Index (CPI) data was lost, resulting in a downward bias in year-on-year measures.
She adds that the upcoming CPI release will incorporate a change related to home ownership, which could further increase inflation readings.
Swonk has recently highlighted the impact of the Middle East conflict on U.S. and global economies, noting supply chain disruptions beyond oil. She has also observed that stocks tend to react more to certain types of market news than to Federal Reserve statements, emphasizing the effect of off-window communication. These comments reflect her ongoing focus on factors influencing major economic indicators.