NY Fed inflation expectations ease modestly in the short term
The New York Fed Survey of Consumer Expectations shows that households’ inflation expectations decreased slightly over the short-term horizon and remained unchanged at the medium and longer-term horizons. One-year inflation expectations eased from 3.7% in June to 3.6% in July
For the next three years, the poll showed that households expect inflation to hold at 3.3%, unchanged from the previous release. Finally, in the five-year perspective, households still expect inflation to remain at 3% as in June.
The survey also showed that expectations for gas price growth partially rebounded after their sharp decline in June. Labor market expectations were mixed, with unemployment and job loss expectations deteriorating while job finding expectations improved somewhat.
Market’s reaction
The US Dollar Index (DXY) hovers around 99.60, relatively unchanged after the release. The DXY is down on the day, weighed on by the discouraging Nonfarm Payrolls (NFP) report published earlier in the day.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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