: Americans have not been this worried about layoffs since April 2020 — and they also see no immediate end to rising prices

by | Nov 14, 2022 | Stock Market

Less than a week ago, October inflation data came in lower than expected and Wall Street cheered the news as a hopeful sign that rising prices were finally cooling. Consumers sounded less optimistic Monday, bracing for inflation rates to rise in the near-, mid- and long term, according to the Federal Reserve Bank of New York’s survey of consumer expectations. Meanwhile, the share of people who expect higher jobless rates a year from now has reached a high not seen since April 2020.

Those downbeat notes tally with previous surveys. Sentiment was lower than expected in November, according to the University of Michigan’s U.S. Consumer outlook on Friday. These reports add to the recession drumbeat. From September and October, consumer-inflation expectations rose in all three of these categories — one year, three years and five years from now. For example, the median expectation for inflation a year from now is 5.94%. That’s up from the 5.44% in the New York Fed’s September survey. In October, the yearly inflation rate fell to 7.7% from 8.2% in September. Inflation rates are powered by various factors. But inflation expectations matter because they are tied with the big-picture question about whether consumers are resigned to stubbornly higher prices and/or pull back on spending. In mid-day trading Monday, the Dow Jones Industrial Average
DJIA,
-0.63%,
S&P 500
SPX,
-0.89%
and Nasdaq Composite
COMP,
-8.00%
were all treading water.Jobless expecta …

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