Consumers Expect Inflation To Get Worse, Even As Fed Cuts Rates
Update: 2025-10-29
Description
Despite the Federal Reserve's optimistic signals, Americans remain worried about rising prices. Recent surveys indicate that consumers expect inflation to increase, not decrease, in the next year. The Conference Board's latest report shows that consumers anticipate a six percent price hike by next October, a slight uptick from their previous expectations. This contrasts with the Fed's more positive outlook, as officials plan to cut interest rates soon, indicating they believe inflation will approach their two percent target. However, the September inflation report reveals some concerns. While overall prices rose by three percent over the past year, a drop in the Owners Equivalent Rent measure and a jump in core goods prices suggest that inflation may not be as stable as hoped. This ongoing inflation anxiety could impact the economy and future Fed decisions, with some economists questioning the wisdom of interest rate cuts amid uncertainty about price trends.
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