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Inflation fears on the rise as one-year outlook in Fed survey hits highest level since May 2023
The survey also showed household spending growth expectations rising to 5.5%, the highest since May 2023, as Fed officials weigh policy.
- Inflation fears intensified in September as the New York Federal Reserve's Survey of Consumer Expectations showed median inflation expectations for the next 12 months rose to 3.9%, the highest level since May 2023 and up 0.3 percentage point from August.
- Gas prices exceeded $4.70 per gallon at an Exxon station in Alexandria, Virginia on October 2, while Treasury yields have soared in recent weeks to levels unseen since the early part of the century.
- The survey found household spending growth is expected to hit 5.5%, also up 0.3 percentage point and the highest since May 2023, with bond market breakevens for the five-year outlook at 2.35% and Fed funds futures implying a 5.58% rate in five years.
- Markets largely expect the Federal Open Market Committee to keep benchmark rates steady between 3.75% and 4% when it meets later in October, as New York Fed President John Williams said policymakers can afford to take their time evaluating rate decisions.
- Longer-Term inflation expectations remain better-anchored, with three-year expectations at 3.3% and five-year views unchanged at 3%, as Fed officials consider consumer expectations a key driver of actual inflation dynamics.
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14 Articles
14 Articles
One-Year Inflation Expectations at Three-Year High, NY Fed Says
Americans’ expectations for inflation in the short-term jumped last month while their sentiment toward the labor market improved, according to a Federal Reserve Bank of New York survey released Wednesday.
·Arlington, United States
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Short-Term Inflation Expectations Reach Three-Year High, NY Fed Survey Says
Americans’ expectations for inflation in the short-term jumped last month while their sentiment toward the labor market improved, according to a Federal Reserve Bank of New York survey released Wednesday.
·New York, United States
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NY Fed September survey finds public expecting more near-term inflation
The public’s near-term expected path for inflation jumped in September to its highest level in over three years as households downgraded both their current and future financial outlooks, the Federal Reserve Bank of New York said on Wednesday.
·London, United Kingdom
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Total News Sources14
Leaning Left2Leaning Right1Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
L 29%
C 57%
14%
Factuality
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