New York Fed Survey Holds 1-Year US Inflation View at 3.5% as Finance Worries Rise
Updated
Updated · Reuters · Jun 8
New York Fed Survey Holds 1-Year US Inflation View at 3.5% as Finance Worries Rise
3 articles · Updated · Reuters · Jun 8
Summary
May inflation expectations stayed broadly steady, with households seeing prices up 3.5% a year ahead, 3.1% in three years and 3.0% in five years.
That stability came despite Middle East war-driven pressure on gasoline, shipping and supply chains, suggesting households still expect the Fed to steer inflation back toward its 2% target.
Uncertainty over near-term inflation still increased, and expected home-price growth jumped to 3.5% from 3.0%, the highest reading since July 2022, even as expected gasoline inflation eased to 5%.
Personal-finance sentiment deteriorated: respondents reporting worse current finances hit the highest level since January 2023, and the net share expecting a better financial future fell to its lowest since October 2022.
The survey lands ahead of the Fed's June 16-17 meeting, where officials are expected to hold rates at 3.50%-3.75% while weighing strong jobs data and whether war-linked inflation could require tighter policy.