Are you better off now than you were a year ago?
According to the Federal Reserve Bank of New York’s (FRBNY) Survey of Consumer Expectations (SCE), more than 41 percent of U.S. households say they are financially worse off than a year ago in September, up from 40 percent in August.
By comparison, just 18 percent say they are better off now than they were a year ago, unchanged from the previous month.
Households are still pessimistic about the future as nearly one-third warn they will be worse off, the same as the previous month. A quarter thinks they will be better off, also the same from the previous month.
Meanwhile, the New York Fed’s monthly SCE found that median one-year-ahead inflation expectations edged up to 3.7 percent, up from 3.6 percent. The three- and five-year-ahead expectations came in three percent and 2.8 percent, respectively.
So, consumers’ inflation forecasts remain well above the Federal Reserve’s two percent target.
Price expectations remained elevated.
From the regional central bank:
“The Federal Reserve Bank of New York’s Center for Microeconomic Data today released the September 2023 Survey of Consumer Expectations, which shows that inflation expectations increased slightly at the short- and medium-term horizons, while they decreased at the longer-term horizon. Labor market expectations were mixed with unemployment expectations deteriorating and perceived job loss risk improving. Households’ perceptions and expectations for credit conditions deteriorated slightly.”
Bidenomics is not working, contrary to the administration’s appeal to the public.
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