Reuters
U.S. consumers’ short-term inflation outlook jumps, NY Fed survey shows
U.S. consumers expect the economy to continue its rapid resurgence from the COVID-19 pandemic over the next year, with forecasts for inflation, earnings, income growth and spending all increasing in June, according to a monthly survey released on Monday by the New York Federal Reserve. The internet-based survey taps a rotating panel of 1,300 households and is a useful barometer for the U.S. central bank as it weighs its inflation outlook. The Fed’s preferred inflation gauge has surged to the fastest annual pace since 1992 and is well above the central bank’s 2% target, but policymakers remain divided about how long the higher inflation readings will persist as supply bottlenecks caused by the pandemic begin to fade.
