Overview
- The New York Fed’s July survey showed one-year inflation expectations at 3.6% and three- and five-year expectations steady at 3.3% and 3.0%, respectively.
- Households reported slightly better views of their current and future finances but said credit is harder to obtain now and expected to ease later.
- Respondents again anticipated higher gasoline prices a year ahead while home-price growth expectations held at about 3.2%.
- Consumers signaled a higher chance of future unemployment and a greater prospect of losing a job, even as the odds of finding work after a job loss improved in July.
- Measured inflation remains well above the Fed’s 2% goal and volatile energy costs linked to the Middle East war are complicating whether policymakers will raise rates further, a development that could tighten borrowing costs for households and businesses.