NY Fed one-year inflation expectations 3.1% vs 3.0% prior

• One year inflation expectations 3.1% vs 3.0% prior
• Three year expectations 3.0% vs 3.0% prior
• Five year expectations 3.0% vs 3.0% prior
• Expectations of a worsening financial situation hit the highest since Nov 2023
• Expected spending growth accelerated
• Public more worried about the credit and job market

This is a dovish report and pushes back against some other metrics showing higher inflation expectations. It will be hard for the Fed to cut in May given all the tariff and political uncertainty but this is some fuel in that direction.

Of course the market is sending its own signals with the Nasdaq down 3.6% today.

This article was written by Adam Button at www.forexlive.com.