**New York Fed Survey Shows Inflation Fears Easing**
Consumer expectations for inflation declined across short-, medium-, and long-term horizons in May, according to new data released Monday by the Federal Reserve Bank of New York. The findings from the latest nationally representative Survey of Consumer Expectations suggest a more optimistic outlook, with household pessimism about the labor market lessening and slight improvements seen in consumer debt delinquency expectations and overall household finances.
CNBC reported the results of the New York Fed survey as a positive development for the White House, as administration officials continue efforts to calm inflation concerns, particularly those linked to tariffs. The report follows the May 30 release of the personal consumption expenditures (PCE) price index, which showed a modest 0.1% month-over-month increase in April and a 2.1% rise year-over-year.
“By every measure of inflation, it’s down by more than it’s been in more than four years,” said National Economic Council Director Kevin Hassett during a Monday morning appearance on CNBC’s “Squawk Box.”
Additionally, a recent Chief Executive Group survey revealed a significant drop in recession fears among business leaders. Fewer than 30% of CEOs surveyed now foresee a recession, compared to 46% in May and 62% in April, according to CNBC.
These findings suggest growing confidence in economic stability and easing inflation pressures – a welcome shift as policymakers and markets closely monitor evolving consumer and business sentiment.
