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Diane Swonk highlights comments from Warsh regarding ongoing inflation concerns in the U.S. economy. Warsh points to the Federal Reserve's preferred inflation measure, the 12-month change in the PCE price index, standing at 3.7 percent, with the six-month change at 4.1 percent.
These figures suggest that price pressures continue to challenge the Federal Reserve’s goal of price stability.
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Swonk has previously noted that trust, rather than just economic data, drove a recent rout in the bond market. She also analyzed divisions within Federal Reserve leadership ahead of Chairman Warsh’s Jackson Hole speech. These factors remain relevant as attention shifts to ongoing inflation data.