KPMG economist Swonk forecasts hot PCE report, potential Fed rate hike

KPMG economist Diane Swonk expects a hot PCE inflation report that could push the Federal Reserve toward another rate hike, tightening monetary policy and raising borrowing costs amid persistent inflation concerns. The warning comes ahead of the closely watched PCE data, the Fed's preferred inflation gauge, with markets weighing whether price pressures will force policymakers to extend their tightening cycle. Higher rates would ripple through risk assets, including crypto, by lifting borrowing costs and weighing on economic growth. Investors should watch the upcoming PCE release and Fed commentary for signals on the pace and direction of policy.