US Inflation Outlook: Optimism Grows Despite Regional Disparities.

The New York Federal Reserve's monthly Survey of Consumer Expectations for May showed one-year inflation expectations down 0.3 percentage point to a 4.1% rate, the lowest annual outlook since May 2021. The survey also showed that median inflation expectations over the longer run edged higher. The job market strength has come despite a series of 10 Fed interest rate hikes aimed in large part at correcting a labor imbalance. Markets largely expect the Fed to skip hiking rates at its meeting this week as policymakers process the impact that their moves have had on economic conditions.