Topic: Diane Swank

Diane Swank, chief economist at KPMG, warns that the conflict in the Middle East is creating a stagflationary shock worse than the 2022 invasion of Ukraine. With oil prices hovering above $100 a barrel, disruptions to global supply chains are expected to impact food prices at grocery stores within weeks. Unlike previous economic shifts, the current market lacks the job growth necessary to buffer against rising transportation and production costs.

Economists expressed confusion over the White House's "clunky" method of calculating reciprocal tariffs, which involves dividing trade deficits by total imports. NPR and KPMG economist Diane Swank warned that these measures act as a regressive tax on consumers and could trigger a global trade war. While some countries face tariffs as high as 49%, the administration maintains these are necessary to combat non-tariff barriers like import licenses and quotas.