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The Federal Reserve Bank of New York’s latest Survey of Consumer Expectations revealed on Monday that median inflation expectations at the one-year and three-year horizons rose to 3.2% and 3.1%, respectively.  

Additional takeaways

“Inflation expectations at both horizons have increased steadily over the past five months and they are now at their highest since mid-2014.”

“Median one-year ahead expected earnings growth decreased 0.2  percentage point in March returning to 2.0%, the level at which it remained between July 2020 and January 2021.”

“The mean perceived probability of losing one’s job in the next 12 months decreased from 14.2% in February to 12.8% in March, the lowest reading in almost three years.”

“The median expected growth in household income increased by 0.4 percentage point to 2.8% in March, the highest level since January of last year.”

Market reaction

The US Dollar Index showed no immediate reaction to this publication and was last seen posting small daily losses at 92.10.