Key insights
- The NY Fed's March survey showed a rise in near-term (1-year) inflation expectations to 3.4% from 3%. This increase, driven by rising energy prices, suggests persistent inflationary pressures. Higher inflation expectations may prompt the Federal Reserve to maintain a hawkish stance, potentially delaying interest rate cuts and negatively impacting US equities.
Americans, rattled by surging energy prices tied to war in the Middle East, are expecting higher near-term inflation and fresh challenges to their personal financial situations, the Federal Reserve Bank of New York reported on Tuesday.
The bank said as part of the March findings of its latest Survey of Consumer Expectations that inflation a year from now is seen at 3.4%, up from 3% last month. The jump left that frequently volatile reading where it was in December.