U.S. Economy and Policy Analysis by Diane Swonk
FOMC minutes show internal debate over rate hikes, Diane Swonk reveals
Diane Swonk reports that the FOMC September minutes show a major debate within the Federal Reserve about the timing and number of necessary rate hikes. Swonk highlights that Warsh gained ...
Diane Swonk: Shift from home buying to rentals drives strong apartment demand
Diane Swonk observes that the transition from home buying to rentals has intensified, with a delayed impact expected in pricing measures. According to Swonk, there has been extraordinary ...
Only 29,000 jobs created amid tepid wage growth, Diane Swonk notes
Diane Swonk highlights that the latest jobs report showed only 29,000 jobs created for the month, with wage gains remaining tepid. Losses in local government employment contributed to the weak ...
Diane Swonk: Global bond market faces intensified selloff beyond inflation concerns
Diane Swonk highlights that the global bond rout is gaining momentum and suggests that factors beyond inflation are driving the selloff. She points out that bond vigilantes, investors who ...
U.S. CBO reveals income gains for all strata in 2023, Diane Swonk notes
Diane Swonk highlights recent discussions about a new U.S. Congressional Budget Office (CBO) study showing that incomes improved across all income levels through 2023. Swonk notes that the CBO ...
Diane Swonk: Financial markets anticipate further rate hikes ahead of Fed decisions
Diane Swonk highlights that financial markets are now pricing in additional rate hikes before the Federal Reserve takes formal action. This development creates a challenge for the central bank, ...
Core PCE has risen above core CPI in U.S., Diane Swonk notes
Diane Swonk highlights a notable shift in the relationship between two key measures of U.S. inflation: the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) index. She ...
Diane Swonk: Export bans on diesel raise risk of higher U.S. prices
Diane Swonk highlights growing concerns that export bans on diesel are becoming increasingly likely. Swonk notes that current research does not offer reassurance, and warns that any short-term ...
Chicago Fed addresses concerns about dot plot direction, Diane Swonk notes
Diane Swonk highlights an important caveat from the Chicago Fed regarding the interpretation of the dot plot by participants at the Federal Reserve meeting. She notes that concerns have been ...
Diane Swonk: Inflation shocks are becoming normal and destabilizing
Diane Swonk warns that economic shocks are increasingly becoming the norm, with inflation lingering for more than five years. She observes that rising prices are affecting both prices and ...
Payroll employment climbs to 163K with public education gains, Diane Swonk notes
Diane Swonk points out that a summer heatwave influenced the U.S. Federal Reserve's actions, as payroll employment surpassed expectations with an increase of 163K jobs. Public sector education ...
Diane Swonk: PCE price index shows persistent inflation concerns
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 ...
Taylor Rule shows Fed rate too low for 2% inflation, Diane Swonk notes
Diane Swonk highlights that the Atlanta Fed’s application of the Taylor Rule—one method to gauge if short-term interest rates are sufficient to return inflation to 2 percent—shows the ...
Diane Swonk: Bond market rout highlights trust risk for new Fed chair
Diane Swonk highlights that markets respond not just to promises but to evidence. This week’s bond market turmoil, she explains, was driven by concerns over trust rather than any single data ...
CPI fails to reflect premium increases, Diane Swonk notes
Diane Swonk contends that current CPI methodology does not fully capture the acceleration in health insurance costs paid by consumers. She explains that while healthcare expenses are measured ...
Diane Swonk: Federal debt issuance held by public surpasses WWII level
Diane Swonk appeared on NBC to discuss recent Treasury interventions addressing market liquidity issues. Swonk pointed out that while the Treasury can step in to alleviate liquidity problems, ...
Rising diesel costs increase inflationary pressures for goods and food, Diane Swonk notes
Diane Swonk highlights the significant impact of diesel prices on inflation, emphasizing that diesel costs affect all goods shipped by truck and increase food production expenses for farmers. ...
Diane Swonk: Core inflation strength may be temporary disturbances
Diane Swonk suggests that some of the recent strength observed in core inflation figures may be attributed to noise or temporary disturbances that are unlikely to occur again. Swonk also notes ...
U.S. budget deficit reached July high not seen since March 2021, Diane Swonk notes
Diane Swonk reports that the U.S. budget deficit surged in July, reaching its highest level since March 2021. She adds that debt held by the public has exceeded GDP as a share of the economy for ...
Diane Swonk: Fed faces rising internal division and pressure ahead of Jackson Hole speech
Diane Swonk shares her latest perspective on the state of the economy. She highlights growing tension between the U.S. Federal Reserve’s dual mandate and divisions among its leadership, as well ...
Rising interest rates raise financing costs and reduce demand, Diane Swonk notes
Diane Swonk explains that most people experience higher interest rates as inflation, as these rates increase the cost of financing transactions. She notes that this rise in costs leads to a ...
