Diane Swonk of KPMG identifies the core 'super services' component of inflation as being sticky, hot, and reaccelerating, moving beyond shocks from energy or tariffs.

Diane Swonk of KPMG expects the Federal Reserve to implement two more interest rate hikes by the end of the year.

Diane Swonk predicts the Federal Reserve will implement two interest rate hikes by the end of the year.

Diane Swonk believes service sector inflation is being driven by inequality, as high-end consumers continue to spend on items like first-class tickets and high-end hotels.

According to Diane Swonk, the Federal Reserve is concerned about the "muscle memory of inflation" as the U.S. is five years into the current inflation problem.

Diane Swonk states that the Federal Reserve is concerned that underlying core inflation may be reaccelerating, particularly in the core superservices component.

Diane Swonk of KPMG believes the Federal Reserve's focus is on price stability because of the stability seen in the unemployment rate.

Diane Swonk believes the neutral interest rate is likely higher than the Federal Reserve previously thought, which suggests the need for a higher short-term rate.

Diane Swonk identifies aging demographics, upward pressure on healthcare costs, and spending by high-end consumers as factors pushing up service sector inflation.

Diane Swonk states that minutes from the March FOMC meeting revealed many members were concerned that underlying core inflation was not just sticky but potentially reaccelerating.

Diane Swonk of KPMG has observed that some Federal Reserve governors have recently stated that the price stability side of the mandate is currently more important than the employment side.

Diane Swonk of KPMG expects the Federal Reserve to implement two interest rate hikes by the end of the year.