New York Fed Says August Job Fears Hit Highest Since April 2020 as 1-Year Inflation Holds at 3.6%
Updated
Updated · Yahoo Finance · Sep 8
New York Fed Says August Job Fears Hit Highest Since April 2020 as 1-Year Inflation Holds at 3.6%
3 articles · Updated · Yahoo Finance · Sep 8
Summary
August survey data showed consumers grew more anxious about jobs and household finances even as near-term inflation expectations stayed largely steady.
1-year inflation expectations held at 3.6%, 5-year views stayed at 3.0%, and the 3-year measure edged down to 3.2% from 3.3%, though respondents expected higher gasoline prices.
April 2020 was the last time expectations for a higher unemployment rate a year ahead were this elevated; the reading rose across age, income and education groups, while confidence in finding a new job after losing one fell.
Households also downgraded views of their current and future finances and of credit access, adding to signs of softer consumer sentiment before the Fed's Sept. 15-16 meeting.
Friday's August CPI report could sway that decision, with Governor Christopher Waller open to holding rates at 3.50%-3.75% if inflation improves further, while Cleveland Fed President Beth Hammack still favors a hike.