Three-year ahead expected inflation 3.0% vs 3.2% priorFive year inflation 2.6% vs 2.7% priorHome price rise seen at 3.0% vs 3.2% priorFood prices seen +5.5% — highest since Oct 2023Outlook on job market improved in MayExpectations of missing debt payments fellFull report
This is a good sign for the Fed but they have been nearly unanimous that they won’t cut rates until the tariff uncertainty has cleared.
This is also a notable signal for stock markets:
The mean perceived probability that U.S. stock prices will be higher 12 months from now increased by 0.6 percentage point to 36.3%, remaining well below the trailing 12-month average of 38.7%.
These tend to be a counter-indicator so a bearish stance from the public should be bullish.
This article was written by Adam Button at www.forexlive.com.