American households are more concerned about income, employment, and their financial outlook than inflation, according to a report from the Federal Reserve Bank of New York. The findings may support calls for the Fed to cut interest rates.
Key Points
Stable short-term inflation expectations at 3.6%
Economic pessimism rising with declining income and wage growth expectations
Concerns over job loss and debt payment ability
Anticipated price increases in rent, gasoline, and college tuition
Pros
Stable short-term inflation expectations
Highlighting economic pessimism over inflation concerns
Potential support for interest rate cuts
Cons
Decline in income and wage growth expectations
High perceived probability of job loss or financial struggles