Consumers more worried about personal finances and jobs, New York Fed report shows

New York Federal Reserve's latest Survey of Consumer Expectations reveals that U.S. consumers' outlook on inflation remained unchanged in August, despite mounting concerns about job market and personal finances. Respondents still projected 3.6% inflation for the next year and 3% for the next five years, slightly down from July's 3.3%.

Gasoline prices were expected to rise in the following year. While inflation expectations remained steady, consumer confidence in job security and financial stability declined. The report showed a higher unemployment rate projection for a year from now, a first since April 2020 during the COVID-19 pandemic. However, the probability of finding new work in case of involuntary job loss also decreased compared to the previous month.

Consumer assessments of their financial situation and credit accessibility were also marked down. The report came a week before the Fed's policy meeting, where the central bank may decide on interest rate adjustments amid persistent inflation. Fed Governor Christopher Waller suggested holding rates steady if inflation targets are met, while other officials remain open to rate hikes.