The expectations of household consumption in the country remained stable during the month of July, although inflation expectations in the short and medium term fell slightly, 0.1%, according to the results of a survey released Monday by the Federal Reserve (Fed) of New York.
Household expectations in most variables were stable and, in particular, those related to house prices, income and expenses did not change. “The expectations of the labor market and household finances remained optimistic,” said the Fed bank in a statement.
The Federal Reserve Bank of New York is the most important of the twelve that make up the Fed system in the United States.
In July, “the expectations on the average of inflation fell by 0.1 percentage points for the horizons of one and three years, up to 2.6%”, while the uncertainty in this respect “fell at both ends” .
This monthly and revolving survey, conducted around 1,300 households in the country, is one of the indicators that the Fed takes into account, along with other data, when making monetary policy decisions.
After the Fed cut interest rates in the United States at the end of last month for the first time in ten years, the markets are pending any information related to the issue, as they predict another drop at the next meeting of the Federal Committee of the Open Market (FOMC).
As for other survey data, the New York branch of the Fed reported that households have less expectations of increasing their earnings in the next year, while for that same period the perceived average probability regarding the loss of employment and Finding a new one has been reduced.
While these data have been published, the New York Fed research department has issued an overview of the US economy in which it states that inflation based on personal consumption expenses remains below the target of FOMC long term.
It also indicates that the indexes of the US stock market “fell significantly in the last month, while the implied volatility rose”, and the yields of 10 and 30 year Treasury bonds “fell sharply and were below short-term rates”.