New York Fed survey: U.S. consumer inflation expectations rose in July, sentiment on the job market improved

U.S. consumer inflation expectations rose in July and sentiment on the job market improved, according to a monthly survey by the Federal Reserve Bank of New York. The New York Fed said on Thursday that expectations for inflation in the coming year edged up to 3.1 percent from 3 percent in June. Expectations for inflation over the next three years remained at 3 percent, while expectations for inflation over the next five years rose to 2.9 percent, the highest level since February. The rise in inflation expectations will strengthen the stance of Federal Reserve officials who want to hold their ground for now. They have kept interest rates on hold this year, but a growing number of investors are betting that the Fed will cut rates at its next policy meeting in September. In the New York Fed survey, more households reported greater difficulty accessing credit and a slight increase in the percentage of households who thought they might not be able to make minimum payments in the next three months. However, the share of households who thought their financial situation would improve in the coming year rose for the second month in a row, while the share of respondents who said they were worse off than a year ago fell to its lowest level since January 2022.