Households expect 12-month inflation to ease to 3.5% in May while job-search confidence hits a five-month low, NY Fed survey shows.
US consumers slightly lowered their one-year inflation expectations to 3.5% in May from 3.6% in April, according to a New York Federal Reserve survey. Three- and five-year inflation outlooks remained steady at 3.1% and 3.0%, respectively, despite geopolitical tensions in the Middle East.
The survey also highlighted growing pessimism about the labor market, with the perceived probability of finding a job after layoffs dropping to 43.7%, its lowest level since December. Credit availability expectations also weakened, with fewer respondents anticipating easier access to credit over the next year.
The US dollar showed mixed performance against major currencies, strengthening against the Swiss franc but varying against others like the Japanese yen.