Diane Swonk, chief economist at KPMG, sees a “creep instead of a surge” in inflation. Things are uneasy below the surface.

Inflation may be increasing at a slower pace than expected, the markets might be cheering, and the Fed will likely soon be cutting, but Diane Swonk isn’t popping Champagne.

The veteran economist says the economy “looks better than it feels” because the very data used to measure it is eroding, and the illusion of resilience could shatter heading into the fourth quarter.

“The only groups that feel good about the economy now are making over $200,000 in the surveys and have large stock portfolios,” Swonk said.