the overall economy, according to a recent poll conducted by the New York Federal Reserve. The survey, which measures consumer expectations, revealed that Americans expect inflation to rise by 4% over the next year, up from 3.7% in July. However, despite these concerns about rising prices, respondents’ expectations for overall inflation remained stable at 3.7%.
This suggests that while Americans may be worried about specific areas of the economy, such as housing and food, they still maintain confidence in the Federal Reserve’s ability to keep overall inflation in check. It is worth noting that the Federal Reserve has recently shifted its stance on inflation, allowing for a temporary period of higher inflation to support the economy’s recovery from the COVID-19 pandemic.
Interestingly, the survey also highlighted growing financial worries among Americans. Respondents expressed greater concerns about losing their jobs and lower expectations for future income growth. This shift in sentiment reflects the ongoing uncertainty surrounding the economic recovery and the impact of the Delta variant on businesses and employment.
The New York Fed’s poll provides valuable insights into Americans’ perceptions of inflation and their overall economic outlook. While concerns about rising prices in specific areas persist, respondents’ expectations for overall inflation remain stable. However, the survey also reveals an increasing unease about personal financial stability, indicating a need for continued support and economic recovery measures to address these concerns.
