The New York Fed’s Survey of Consumer Expectations showed the one-year inflation outlook took a substantial dip in May, down to 3.2% — a 0.4 percentage point decrease from April. While the survey showed inflation expectations are still above the Fed’s 2% annual target, they represent progress and a change in a fearful attitude that coincided with Trump’s saber-rattling on tariffs, culminating with the April 2 “liberation day” announcement.
