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.
33 Articles
33 Articles
Inflation Expectations Just Jumped to a Three-Year High as Americans Now Expect 3.9% Inflation
The post Inflation Expectations Just Jumped to a Three-Year High as Americans Now Expect 3.9% Inflation appeared first on 24/7 Wall St.. AAA put the national average for regular gasoline at $4.37 on October 7, 2026, against $3.12 a year earlier. Pump prices are the most visible price in American life. They help explain why consumers now expect more inflation than at any point in more than three years. On October 7, 2026, the Federal Reserve Bank…
Inflation Fears Surge Again: Americans' One-Year Outlook Hits Highest Level in More Than Three Years
Median inflation expectations for the next 12 months jumped to 3.9%, up from 3.6% in August, according to the Federal Reserve Bank of New York's September Survey of Consumer Expectations.
Inflation Expectations Reach a Three-Year High as Consumers Weigh Rising Prices - FINCHANNEL
Americans’ near-term inflation expectations rose to their highest level since May 2023 in September, according to a New York Federal Reserve survey released October 7. The median expectation for inflation over the next year reached 3.9 percent, up from 3.6 percent in August. The bank’s September Survey of Consumer Expectations showed a smaller increase at […]
1-year expectations rise to 3.9% in September as households anticipate faster spending growth, report worsening finances
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