NY Fed survey shows dip in consumer inflation expectations in April

NY Fed survey results

• NY Fed survey shows inflation expectations at 2.60% vs 2.82% prior
• The 0.22 pp drop is third largest decrease since survey began in 2013
• Survey shows outlook for earnings, spending and employment remain strong
• Household spending growth 3.3% vs 3.1% in April survey

The Fed won't like to see that drop in inflation expectations but that could swing in the other direction if/when these tariffs hit.