Consumer Sentiment Continues to Decline as Inflation Expectations Soar

Consumer sentiment in the US fell in November, reaching its lowest level since May, as concerns about high interest rates and geopolitical tensions weighed on consumers. Inflation expectations also rose to their highest level since 2011, with consumers now anticipating inflation at 3.2% over the next five years. The Federal Reserve has reiterated that inflation has a long way to go to reach its target of 2%, and recent data shows stagnant price growth. However, some Fed officials have suggested that more interest rate hikes may be necessary to combat inflation.