Updated
Updated · American Banker · Sep 8
New York Fed Survey Holds 1-Year Inflation Outlook at 3.6% as Rate Decision Nears
Updated
Updated · American Banker · Sep 8

New York Fed Survey Holds 1-Year Inflation Outlook at 3.6% as Rate Decision Nears

3 articles · Updated · American Banker · Sep 8

Summary

  • One-year inflation expectations stayed at 3.6% and five-year expectations at 3.0% in the New York Fed’s latest consumer survey, while the three-year view edged down to 3.2% from 3.3%.
  • John Williams said expectations remain well anchored and inflation is moving down slowly as tariff effects fade, but he stressed prices still need to be on a credible path back to the Fed’s 2% target.
  • 44% of respondents expected unemployment to rise over the next year—up 1.6 percentage points and the highest since April 2020—while expected wage growth ticked up to 2.9%.
  • The survey lands a week before the FOMC meets, with futures pricing still split and August PPI and CPI due Thursday and Friday likely to shape whether officials hold rates or hike.

Insights

With energy shocks and tariff costs lingering, will the Fed's inflation fight trigger a sudden labor market collapse?
As consumer debt hits record highs, can households survive the looming threat of rising unemployment and persistent inflation?