All articles tagged with #ny fed
White House economic adviser Kevin Hassett blasted a New York Fed study finding most tariff costs are borne by U.S. firms and consumers, calling the paper “the worst” and saying those involved should be disciplined. He argued tariffs have lowered inflation and benefited consumers, while other independent analyses have reached similar conclusions about the domestic burden; the NY Fed declined to comment.
The Federal Reserve Bank of New York reported a deterioration in the public's expectations for longer-term inflation in February, with respondents projecting a rise in inflation rates three and five years from now. This development may concern Federal Reserve officials as they prepare for their upcoming meeting, despite their expectation to hold rates steady. While some recent inflation data has been stronger than expected, survey respondents also projected ebbing price rises for medical care and college, steady food price gains, and declining rent price increases. Additionally, respondents held steady on their expectations for future income and earnings growth but were more pessimistic about job market prospects and credit access.
Credit card debt in the US has surpassed $1 trillion, with a $45 billion increase in the second quarter of 2023, according to the Federal Reserve Bank of New York. Delinquency rates have also risen, with credit card balances experiencing the largest increase among all debt types analyzed. Despite stabilizing delinquency rates, many Americans continue to rely on credit cards amidst inflation, rising interest rates, and economic turmoil. The Federal Reserve's interest rate hikes could further impact credit card debt, although inflation has been cooling in recent months. Personal loans and balance transfer cards are options for those struggling with high-interest debt.
The New York Federal Reserve's Survey of Consumer Expectations for March showed that consumers are becoming more pessimistic about their access to credit and inflation expectations. Respondents expect prices to rise by half a percentage point in the year ahead, equating to a 4.7% annual gain, the first time the near-term outlook increased since October. Consumers also reported that credit is much or somewhat harder to get than a year ago, with 58.2% reporting this, the highest ever in a data series that goes back to June 2013.