
Americans worry about finances as inflation fears rise

According to a New York Federal Reserve survey released yesterday, American consumers are increasingly concerned about their household financial situation amid growing speculation that inflation is again on the rise. The central bank’s monthly Survey of Consumer Expectations found that consumers expect inflation to be higher in the year ahead, and fewer expect their households’ financial situations to be better off a year from now. The Fed’s Survey of Consumer Expectations found that median inflation expectations increased at the one-year-ahead horizon to 3.4% from 3.2% and at the five-year-ahead horizon to 3.0% from 2.9%. Meanwhile, the mean perceived probability of losing one’s job in the next twelve months increased by 0.4 ppt to 14.9%, above the trailing twelve-month average of 14.1%. Surprisingly, while many Americans have expressed concerns over rising prices and the effect of President Donald Trump’s tariff policies, most have yet to change their spending habits. Up until now, many experts believe this consumer resolve to maintain living standards is what has helped the United States avoid a significant economic slowdown. Meanwhile, high food costs in particular are making it hard for American consumers