NY Fed Inflation Expectations Ease Modestly

The New York Fed Survey of Consumer Expectations revealed that households' inflation expectations have eased slightly over the short-term horizon. According to the survey, one-year inflation expectations decreased from 3.7% in June to 3.6% in July. For the next three years, households expect inflation to remain at 3.3%, unchanged from the previous release.

In contrast, medium and long-term inflation expectations remained unchanged. Households still expect inflation to be 3% over the five-year perspective, consistent with June's numbers. Additionally, the survey showed that gas price growth expectations partially rebounded after a sharp decline in June.

However, labor market expectations were mixed, with unemployment and job loss expectations deteriorating while job finding expectations improved somewhat. The release had little impact on the US Dollar Index (DXY), which hovered around 99.60 and was weighed down by the discouraging Nonfarm Payrolls report published earlier in the day.