Diane Swonk sees 2% inflation out of reach until 2029, even with falling oil
As seen on the 24/7 Wall St. homepage on November 13, 2026.
The toll of stubborn inflation
- October producer prices rose 0.3%, up 6.5% year over year
- Diane Swonk: wage gains have trailed inflation for nearly half the expansion
- Swonk sees 2% inflation out of reach until 2029, even if oil drops hard
- Supreme Court weighs whether agencies can keep enforcement in-house
A KPMG chief economist putting the 2% target three years out reframes how long rates stay restrictive, and the 6.5% annual producer price gain backs her up. The split she describes matters for positioning: affluent households with stock gains keep funding discretionary spending while wage earners absorb a steeper necessities bill.
Continue ReadingShow less
The Fed's 2% inflation target is off the table until 2029 even if oil prices fall sharply, KPMG chief economist Diane Swonk told Marketplace Morning Report, with October producer prices up 6.5% year over year.
That timeline matters for anyone thinking about how long borrowing costs stay elevated. If Swonk's read is correct, the Fed is not on the verge of a pivot, and portfolios positioned for near-term rate relief are carrying more duration risk than current market pricing suggests.
Sponsored
Swonk also highlighted a divide that has quietly been widening throughout this stretch of high prices. Wage gains have trailed inflation for nearly half the expansion, meaning working households are absorbing a steeper bill for necessities even as wealthier families with stock-market gains continue to fund discretionary spending.
The episode also previews a Supreme Court case about whether federal agencies can keep enforcement proceedings in-house, a legal question with broad implications for how regulators exercise power across the economy.
