U.S. Economy and Policy Analysis by Diane Swonk
Diane Swonk: Inflation pressures are broadening beyond energy and testing Fed patience
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 ...
Job openings reach 7.6M led by one sector, Diane Swonk notes
Diane Swonk highlights a notable surge in U.S. job openings, emphasizing that the headline figure of 7.6 million is misleading. According to Swonk, the increase was largely concentrated in the ...
Diane Swonk: U.S. inflation remains elevated in April PCE index
Diane Swonk highlights that the Federal Reserve's preferred inflation gauge, the personal consumption expenditure (PCE) index, remained high and persistent in April. She observes that five years ...
Hot and sticky inflation drives expectations for rate hikes, Diane Swonk notes
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 ...
Diane Swonk: Fed minutes show growing concern over inflation risk
Diane Swonk highlights that hawkish sentiment increased at the April Federal Reserve meeting. The newly released minutes from the April FOMC indicate a rising number of participants are focused ...
CPI posts hottest pace since May 2023, Diane Swonk notes
Diane Swonk reports that the Consumer Price Index (CPI) increased by 0.6 percent in April, following a 0.9 percent rise in March. This marks the fastest two-month increase since May and June of ...
Diane Swonk: Iran war could cause Federal Reserve to raise rates
Diane Swonk, industry influencer, commented that a war involving Iran could lead the Federal Reserve to raise interest rates, echoing an assessment from Pimco referenced in the Financial Times. ...
Next week CPI to include home ownership update, Diane Swonk notes
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 ...
Diane Swonk: Wall Street rebound driven by smallest number of stocks on record
Diane Swonk, industry influencer, observes that Wall Street's recent rebound is being led by the smallest number of stocks on record. She warns that such narrow gains are not a positive sign for ...
Conflict triggers supply chain disruption beyond oil shock, Diane Swonk warns
Diane Swonk, industry influencer, discusses the current conflict in the Middle East and its broader economic implications for the U.S. and global markets. Swonk highlights that the situation is ...
Diane Swonk: Market reacts more to reaction function news than Fed statements
Diane Swonk, industry influencer, highlights that reaction function news drives stock market responses more than information specifically released by the Federal Reserve. She adds that ...
Emerging markets not producing oil face severe harm from war, Chris Kapsaroff notes
Chris Kapsaroff, industry influencer, highlights that emerging markets which do not produce oil are facing extremely hard collateral damage due to war. He also mentions that the International ...
@colbyLsmith: Greenspan increased transparency but discouraged public dissent on board decisions
@colbyLsmith, industry influencer, comments on the leadership style of former Federal Reserve Chair Alan Greenspan. Greenspan is credited with increasing transparency at the U.S. central bank but ...
Stock market rises as job openings fall, Diane Swonk emphasizes
Economist Diane Swonk highlights a sharp disconnect between the stock market's performance and the underlying conditions of the U.S. economy. She references an article in the Financial Times that ...
Diane Swonk: Physical oil prices exceed futures as buying competition intensifies
Diane Swonk highlights a widening gap between spot and futures prices for oil. She observes that competition for physical barrels remains strong, pushing spot prices as high as $133 compared with ...
U.S. PCE inflation shows higher momentum in February, Diane Swonk notes
The U.S. Personal Consumption Expenditures (PCE) index increased by 0.4% in February, up from a 0.3% gain in January. Economist Diane Swonk noted that the annual rate held steady at 2.8% ...
Diane Swonk: Central banks faced concerns over persistent inflation in 2022
Diane Swonk noted that as early as 2022, many central banks expressed concerns about a shift into a period defined by recurring shocks and heightened inflation. Swonk stated that unfortunately, ...
Rate cuts cannot cure labor market challenges, Diane Swonk emphasizes
Diane Swonk highlights that Federal Reserve efforts to cut rates to improve employment may not be as effective as before. She points out that both worker demand and investment have become less ...
Diane Swonk: Bracing for slowflation or potential stagflation in U.S.
Diane Swonk commented on a conversation involving the New York Fed, expressing a different viewpoint from her peers regarding Federal Reserve Chair Powell’s more dovish outlook. Swonk stated ...
Mounting shortages and rationing disrupt supply chains, Diane Swonk warns
Diane Swonk highlights that the war in Iran is not only causing an oil shock but also has wider effects on global supply chains. She explains that shortages and rationing are increasing in ...
Diane Swonk: Post pandemic inflation remains a concern as oil shock does not warrant rate hike
Federal Reserve Chair Jerome Powell believes the outlook for inflation is under control and sees no need for another interest rate hike due to the recent oil shock, according to remarks shared on ...
