A new report from the New York Federal Reserve has revealed a mixed bag of news on inflation expectations, with little change seen in July. The Fed's Survey of Consumer Expectations (SCE) is a closely watched indicator of inflationary pressures, and the latest data shows that consumers' expectations for inflation over the next three years remain largely unchanged. Despite the Federal Reserve's efforts to tame inflation through interest rate hikes, consumers' perceptions of future price growth have remained stubbornly high, with median expectations for inflation over the next three years holding steady at around 3%. The findings may come as a surprise to some economists, who had expected to see a more significant decrease in inflation expectations following the Fed's recent rate hikes.
NY Fed finds little change in inflation expectations in July Reuters
