(Feb 10): US consumer expectations for inflation and the job market improved slightly in January, according to a Federal Reserve Bank of New York survey.
Households saw prices rising 3.1% over the next year, down from 3.4% in December, according to the median response in results of the New York Fed’s monthly Survey of Consumer Expectations, released Monday. The probability consumers assigned to losing a job also edged down, while their perceived chances of being able to find a new one within three months improved to around 46%.
Signs of a stabilising labour market paved the way for Fed officials to hold interest rates steady last month, after three consecutive rate cuts to close out 2025. Policymakers have said those cuts will support the labour market while also leaving rates high enough to keep putting downward pressure on inflation, which remains above the US central bank’s 2% target.
The New York Fed survey results follow a Feb 5 Bureau of Labor Statistics report showing job openings fell in December to the lowest level since 2020, while layoffs edged up. The BLS will publish its monthly employment report for January, briefly delayed by last week’s government shutdown, on Wednesday.
Households’ views of their finances over the next year were about evenly split among those who perceive their situation improving and those who believe it will worsen. Expectations for inflation three and five years ahead were both unchanged at 3%.
Uploaded by Chng Shear Lane
