New York Fed Survey Indicates Dip in Medium-Term Inflation Expectations, Rise in Unemployment Concerns

The New York Fed's August 2026 Survey of Consumer Expectations shows a slight decrease in households' medium-term inflation outlook, while short- and long-term views remain stable. Concurrently, labor market expectations worsened, with unemployment and job finding expectations deteriorating, and unemployment increase expectations reaching a post-April 2020 high. This mixed data provides insights into consumer sentiment regarding future economic conditions, which can influence Federal Reserve policy decisions.