The risk of consumer prices rising was diminished Monday after the New York Federal Reserve Bank said inflation expectations declined in April.
The New York Fed reported that the public’s expectations of future price rises declined to the lowest level since 2017. The public expects inflation to rise by 2.6 percent a year from now, down from 2.8 percent in March. Three years from now, expectations are for 2.7 percent, down from 2.9 percent.
New - York - Fed - April - Survey
The New York Fed’s April Survey of Consumer Expectations was taken before the latest round of tariff hikes was announced. But falling inflation expectations indicate that the risk fo the economy of higher prices from the hike in import levies has retreated.
The Fed said that the public had become more optimistic about...