Posted 1/8/2024, 4:00:00 PM
Americans See Inflation Cooling Over Next Few Years But Still Above Fed Target
- Americans' expected inflation rate in 1 year drops to 3%, the lowest since January 2021, per NY Fed survey
- Consumers see inflation slowing to 2.6% in 3 years and 2.5% in 5 years, but still above Fed 2% target
- Americans expect food, rent costs to fall but college costs to rise over next year
- Survey plays critical role in Fed policy as actual inflation depends partly on expectations
- Fed has hiked rates aggressively to curb inflation and hints at rate cuts in 2024 as economy cools