Diane Swonk: Inflation pressures are broadening beyond energy and testing Fed patience

Diane Swonk: Inflation pressures are broadening beyond energy and testing Fed patience
Inflation spreads to goods and travel

Diane Swonk highlights that inflation is no longer limited to energy costs. She notes that while gas and food prices initially impacted households, the greater concern now lies in rising costs for a broad array of goods, persistent services inflation, and travel expenses that remain high.

Swonk argues these underlying pressures are posing a challenge to the Federal Reserve’s efforts to control inflation.

Inflation has continued to run high, according to Diane Swonk's recent comments on the April PCE index. Swonk has also pointed to persistent pressures in the labor market, as U.S. job openings climbed to 7.6 million, mainly in professional business services, she noted previously. Her analysis has focused on the ways both inflation and employment trends remain key factors for the Federal Reserve.

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