🇺🇸 POSITIVE INFLATION SIGNAL FROM NEW YORK FED
Americans are showing less concern about inflation in January, as the Federal Reserve Bank of New York's latest Survey of Consumer Expectations reveals that one-year inflation expectations dropped to 3.1% from 3.4% in December.
Meanwhile, three-year and five-year inflation expectations remained steady at 3%, suggesting consumers maintain confidence in long-term price stability.
The survey also showed encouraging signs in the labor market, with respondents reporting a lower perceived chance of losing their jobs and better prospects for finding new employment if needed.
This decline in near-term inflation expectations provides reassurance to Federal Reserve policymakers as they manage ongoing price pressures. Fed officials anticipate inflation will decrease throughout the year, partly due to expected reductions in tariff pressures.
This marks a positive shift after December saw inflation expectations rise, offering hope that the U.S. economy continues moving toward the Fed's 2% inflation target.
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