The latest NY Fed consumer survey shows us citizens still foresee high inflation here to stay. Near-term expectations crept up slightly, while 3-5 year forecasts remain stubbornly above the Fed's 2% target.
Americans anticipate necessities like food and fuel costs will hold steady at painful prices. But medical care costs are seen spiking further.
Powell says the central bank won't ease rates until truly confident inflation has cooled off. But recent figures imply that may take longer than forecasted.
As long as consumers expect a high-price future, businesses have room to keep hiking costs in a self-fulfilling prophecy.
Only time (and further Fed hikes?) will tell if Americans' inflation insights stay on point. Stay tuned for signs their outlook is finally on the mend!
