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Diane Swonk highlights that the current economic environment is marked by persistent and elevated inflation, characterizing it as 'hot and sticky.'
She observes that market participants are increasingly pricing in a higher probability of interest rate hikes from the U.S. Federal Reserve as leadership within the central bank becomes more alert to inflation risks.
Swonk previously reported that consumer prices rose 0.6% in April after a 0.9% gain in March, with the combined advance marking the fastest two-month pace since 2022 and the highest annual rate since May 2023 (link). She also noted that the recent U.S. government shutdown affected the accuracy of October CPI data, while upcoming figures are set to include a home ownership update (link). Those developments have kept attention focused on potential data revisions and inflation trends.