US economy faces inflation concerns amidst debt ceiling deadline and banking turmoil.

Americans expect higher inflation in the long term, with a median expectation of 4.4% one year from now, according to a survey by the New York Federal Reserve. Consumers anticipate inflation will remain around 2.9% three years from now and 2.6% five years from now. The survey also found that more Americans are feeling pessimistic about the labor market, with mean unemployment expectations increasing to 41.8% in April and the mean perceived probability of finding a job dropping to 55.2%.