![]() ![]() However, the labor market continues to be a sense of strength for the economy as areas hard-hit by the pandemic continue to hire and respond to consumers’ increased appetite to spend on services and experiences. Additionally, the Fed on Wednesday will announce whether it plans to pause its rate-hiking streak or enact another increase.Īmid the Fed’s historic stretch of ratcheting up interest rates (enacted as a means of trying to bring down inflation by cooling demand), more interest rate-sensitive areas of the economy have slowed. The early half of this week will provide additional clarity on inflation’s trajectory: The Bureau of Labor Statistics on Tuesday and Wednesday is set to release the Consumer Price Index and Producer Price Index, respectively. Since March 2022, the Fed has increased its benchmark interest rate 10 consecutive times. The Fed’s preferred inflation gauge, the core Personal Consumption Expenditures price index that excludes energy and food, was up 4.7% for the 12 months ended in April. Since peaking at a 40-year high last June, inflation has cooled considerably but still remains above the Federal Reserve’s target of 2%. ![]() Additionally, inflation expectations for three and five years from now increased from the month before, according to the New York Fed’s monthly Survey of Consumer Expectations, which measures expectations and behaviors over time for a rotating panel of 1,300 individuals. ![]() While survey respondents also reported more optimism about the strong labor market and their households’ abilities to bring in and spend money, consumers were less optimistic about their ability to get credit and their overall financial health, the survey showed. The Federal Reserve closely watches consumers’ inflation expectations, as they can be a self-fulfilling prophecy: If consumers anticipate that prices will remain high, they might spend more now and demand higher wages, and businesses might raise prices to accommodate higher demand and wages. “That is consistent with the theme that inflation is coming down - probably more slowly than many were hoping - but nonetheless, that trend remains lower both from an actual data standpoint and also from a consumer expectation standpoint,” Angelo Kourkafas, an investment strategist with Edward Jones, told CNN. Compare Standard and Premium Digital here.Īny changes made can be done at any time and will become effective at the end of the trial period, allowing you to retain full access for 4 weeks, even if you downgrade or cancel.Americans are optimistic about inflation being lower in the coming months however, their future outlooks - for price hikes as well as their own finances - are a little more clouded.Ĭonsumers’ near-term inflation expectations fell in May to their lowest level in two years, according to new survey data released Monday by the Federal Reserve Bank of New York. You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many user’s needs. If you’d like to retain your premium access and save 20%, you can opt to pay annually at the end of the trial. If you do nothing, you will be auto-enrolled in our premium digital monthly subscription plan and retain complete access for $69 per month.įor cost savings, you can change your plan at any time online in the “Settings & Account” section. For a full comparison of Standard and Premium Digital, click here.Ĭhange the plan you will roll onto at any time during your trial by visiting the “Settings & Account” section. Premium Digital includes access to our premier business column, Lex, as well as 15 curated newsletters covering key business themes with original, in-depth reporting. Standard Digital includes access to a wealth of global news, analysis and expert opinion. During your trial you will have complete digital access to FT.com with everything in both of our Standard Digital and Premium Digital packages. ![]()
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