Consumers in the United States kept their expectations of inflation restrained i...
FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis
The Federal Reserve Bank of New York’s survey of consumer expectations showed that people’s average outlooks for inflation declined by 0.1 percentage point to 2.6% over both one- and three-year time horizons. Uncertainty about inflation also fell. If people expect inflation will remain lower than the Fed’s target, policymakers lose credibility. Low inflation also makes it more likely that interest rates will fall near zero and lose their ability to encourage further economic activity. The Fed currently targets short-term rates between 2.00% and 2.25%.
Overall, consumers report a reasonably cheery view of their own financial situation, with a largely stable view of the price hikes they expect to see in medical care and rent even though they see even higher gasoline and college education prices than they did the last time the survey was taken.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Next Recession All On Fed, Not China Trade WarTrump needs the Fed to act or its curtains for his economy. And his one shot at re-election.
Read more »
Trump should calm things down with the Fed, and seek stronger exports to EU, China and JapanProblems of Washington's incoherent fiscal and trade policies should not be dumped on the Federal Reserve.
Read more »
Wall Street sees even more Fed rate cuts ahead with Morgan Stanley predicting a return to zeroEconomists now see the likelihood of three quarter-point reductions before the end of the year, along with multiple moves in 2020 until it becomes clear that the U.S. central bank has staved off a recession.
Read more »
Oil slips as demand outlook, trade dispute weighOil prices dipped on Monday amid worries about an economic slowdown and the Sino...
Read more »
Oil falls on lower demand outlook, U.S.-China trade disputeOil prices fell on Monday amid worries about an economic slowdown and the U.S.-C...
Read more »
A growing legion of debt-laden 'zombie consumers' has been enabled by low interest rates, economists say'Zombie consumers are huge beneficiaries of the Fed's continued monetary stimulus,' said Stephen Roach, a senior fellow at Yale University.
Read more »