US Households Expect Inflation to Stay Above 3 Percent in Year Ahead: New York Fed

U.S. households anticipate inflation will stay above 3 percent in the year ahead, suggesting they doubt the Federal Reserve will hit its 2 percent inflation target, according to a widely watched New York Fed survey. The New York Fed’s May Survey of Consumer Expectations (SCE), based on responses from 1,300 households, places the median one-year outlook for inflation at 3.2 percent. This is slightly down from the 3.3 percent reading in April. Consumers expect inflation to remain above the central bank’s 2 percent target rate in the coming years. New York Fed survey data showed the three-year-ahead forecast unchanged at 2.8 percent. The five-year-ahead horizon climbed from 2.8 percent in April to 3 percent last month....