"US Consumer Inflation Outlook Hits Snag in February, Posing Challenge for Fed"

The Federal Reserve Bank of New York reported a deterioration in the public's expectations for longer-term inflation in February, with respondents projecting a rise in inflation rates three and five years from now. This development may concern Federal Reserve officials as they prepare for their upcoming meeting, despite their expectation to hold rates steady. While some recent inflation data has been stronger than expected, survey respondents also projected ebbing price rises for medical care and college, steady food price gains, and declining rent price increases. Additionally, respondents held steady on their expectations for future income and earnings growth but were more pessimistic about job market prospects and credit access.