Market Outlook: Inflation, Debt Ceiling, and Household Spending Trends Analyzed.

The New York Federal Reserve's Survey of Consumer Expectations for April showed that the outlook for household spending fell to an annual rate of 5.2%, the lowest level since September 2021, reflecting downbeat consumer sentiment and a potential slowdown for inflation. Respondents expect an inflation rate of about 4.4% in the next 12 months, still above the Fed's 2% inflation target, though drifting closer to the goal. The survey's results come less than a week after the Fed approved its 10th consecutive interest rate hike since March 2022.