00:00 Brad Smith
We’re getting insight into how American households are feeling about inflation, jobs, and their finances with a May survey out of the New York Fed. Yahoo Finances, Ali Kano, joins us now with the latest insights. Ali, what do we know?
00:12 Ali Kano
Hey, Brad. Well, there’s some encouraging news to this report. According to the New York Fed’s latest consumer survey, inflation expectations are cooling. Consumers now see prices rising 3.2% over the next year. That’s down four tenths of a point from April. Expectations also dropped slightly for the three and five-year outlooks. Now, that pullback in pricing pressure comes as households are also feeling slightly better about the labor market. The average American now sees a lower chance of losing their job in the next year with that probability falling to just under 15%. And more people believe they’d be able to find a new job quickly if they had to, especially among lower income groups and those without a college degree. Wage growth expectations ticked up slightly but remain below last year’s average. Now, when it comes to household finances, Americans are also feeling a bit more stable. Fewer people expect to miss debt payments, and more say it’s gotten easier to access credit compared to one year ago. Still, there are some signs of caution. The median expected growth in government debt, that jumped to 5.4%, the highest since January, as Trump’s tax bill continues to make its way through Congress. Plus, fewer people expect interest rates on saving accounts to rise, and the belief in a stronger stock market remains weak. But overall, a small step in the right direction here for household confidence, Brad.
02:02 Brad Smith
All right, Ali, thank you for breaking these findings down for us.
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