Latest news with #SurveyofConsumerExpectations
Business Insider
12 hours ago
- Business
- Business Insider
Inflation ticked up less than expected in May, considering fear around Trump's tariffs
The year-over-year inflation rate ticked up in May to 2.4% from 2.3%, less than expected and reversing this year's cooling trend. Economists expected the consumer price index to surge 2.5% in May from a year earlier. Morgan Stanley expected the new consumer price index report to show evidence of "tariff-driven inflation," given reports and surveys have shown recent and expected changes to prices. The Federal Reserve's Beige Book, which collected information from businesses and others on or before May 23, said all 12 Federal Reserve Districts "indicated that higher tariff rates were putting upward pressure on costs and prices." President Donald Trump said the administration is "working to rapidly defeat inflation" and has repeatedly pushed the Fed to lower interest rates. Federal Open Market Committee members will meet next week to decide on their next rate move. CME FedWatch shows based on market trades, that there's a strong chance rates will remain unchanged. "If the large increases in tariffs that have been announced are sustained, they are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment," said Federal Reserve chair Jerome Powell at a May 7 press conference following the announcement that the Fed held interest rates steady. Powell added that tariffs' effects on inflation could be either short-lived or more persistent, depending on how high they are and how long it takes for the effects to show up in prices. Tariff decisions have already affected business strategies and sales. Small-business owner Michael Salvatore told Business Insider that the legal whiplash with tariffs means more uncertainty. While there have been "serious discussions" about increasing prices at his business locations in Chicago, he said, "there's only so much our customers can reasonably be expected to absorb," and he doesn't want to have to go back and forth on prices. "As a small business owner, uncertainty is just as damaging as the tariffs themselves," Salvatore said. "I can't make clear purchasing decisions or long-term plans when I don't know what rules I'm playing by." Hard economic data has stayed strong, including better-than-expected job growth, and even soft data is starting to improve. Changes to trade deals in May, such as the 90-day pause on many tariffs with China, could be playing a role. On Monday, the Survey of Consumer Expectations from the Federal Reserve Bank of New York showed inflation expectations declined. New National Federation of Independent Business data showed small businesses were more optimistic in May after the index dropped the previous two months. "Although optimism recovered slightly in May, uncertainty is still high among small business owners," Bill Dunkelberg, NFIB's chief economist, said. "While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectations on business conditions and sales growth."
Yahoo
a day ago
- Business
- Yahoo
Cam Newton says athletes go broke because they keep living lavishly long after their million-dollar checks end
At the height of his career, Cam Newton, former NFL MVP and Carolina Panthers quarterback, says he was earning roughly $20 million a year. However, in a recent video on his YouTube channel, Newton confessed that he was making online content 'to keep the lights on.' Newton's candid admission pulls back the curtain on a common struggle retired athletes face: managing money once the big paychecks stop. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) He points to his own situation as 'the No. 1 reason' why so many wealthy players end up broke — their failure to scale back spending when their income takes a hit. Here's how untamed expenses can gobble up even eight-figure salaries. Unlike the stereotypical professional athlete, Newton insists he did a better job managing his money while his career was still active. 'I never really had a financial advisor, but I never really was a splurger either — still to this day,' the 36-year-old says. Although federal and state income taxes reduced his take-home pay to roughly $12 million a year, Newton estimates his annual expenses were between $5 and $6 million — leaving some room for savings and investments. However, he says many athletes fail to acknowledge the fact that their income is temporary, while their lifestyle is permanent. Although he's no longer making eight figures a year, he says his expenses have stayed more or less the same, with private schools, home maintenance, alimony and luxury purchases draining his savings. 'Those things never leave,' he says. 'Your overhead never really changes. Your income changes, but your expenses have to change with it.' Unfortunately, most Americans expect their expenses to change more than their income. According to the latest Survey of Consumer Expectations from the Federal Reserve Bank of New York, consumers expect their household income to rise just 2.7% in the year ahead, while expenses are expected to rise 5%. This rapid lifestyle inflation is one of the key reasons why even high-income families are struggling financially. Roughly 36% of consumers who earned $200,000 or more a year were living paycheck to paycheck, according to a PYMNTS survey. Meanwhile, a Bankrate survey found that 13% of American consumers had no emergency savings and 1 in 3 had more credit card debt than emergency savings. Simply put, most people are vulnerable to a sudden income shock. They're just a couple missed paychecks away from being broke. The only way to avoid this trap is to keep a tight lid on expenses, according to Newton. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Avoiding lifestyle inflation and keeping expenses as low as possible is the key to financial security, according to Newton. 'You can live a couple years like a king or, with the right money decisions, you can live the rest of your life like a prince,' he says. A great way to live within your means is to buy a house that is well within your budget. Nearly 11% of homebuyers exceeded their budget while purchasing their home, according to Clever Real Estate, while 39% exceeded their budget for upfront costs. By avoiding this, you can reduce a major recurring expense for your household. Another lifestyle adjustment to help live within your means is to switch from credit cards and debt to cash and debit cards. Nearly 31% of American consumers are expected to go into debt to finance their discretionary spending on vacations, dining out and live entertainment this year, according to Bankrate. If you can't afford those concert tickets or Euro trip, skip it instead of financing it with debt. 'I've always learned it's better to be able to afford it and not have it, rather than to have it and not afford it,' Newton says. These adjustments can limit your lifestyle inflation and help keep you better prepared for a sudden income shock. Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
2 days ago
- Business
- Yahoo
Recent survey shows the fear Americans have over inflation decreased last month
SPRINGFIELD, Mass. (WWLP) – The fear Americans have over inflation decreased last month, according to a recent survey. This being prompted by the president's decision to back off on his tariff proposals. Mass. clean cement company hopes to win back $87M federal award With tariff threats easing and reports of trade negotiations heating up, this survey by the Fed shows people are starting to worry less about inflation. In the New York Federal Reserve's Survey of Consumer Expectations, inflation expectations declined in May. This comes after surging higher in March and April over concerns about tariffs. Right now, inflation stands at 2.3%. 'It's good, because the economy is struggling as it already is. So it's good for us to see those numbers dwindle,' said Angel Amaro of Springfield. The improving expectations come as the tariff policy has changed. Initial tariffs were set at 10 percent on all US imports, and dozens of nations faced reciprocal duties. President Donald Trump later backed off on the tariffs, opting for a 90-day negotiation period that ends in July. While inflation is coming down, AIC economics professor John Rogers explains it's still above the Fed's 2% annual target rate. 'It's sort of that last mile is difficult to get to, but it's it's going in the right direction,' said Rogers. The survey showed that expectations dipped across most price groups, but saw food prices rising to 5.5 percent over the next year. Rogers says the survey also showed people are optimistic about the job market. 'They feel that the number of people who feel that their jobs are at under threat or at stake is going down. So that's good news. So that gives people confidence if they're confident, they go out and spend money, it's consumer spending that keeps the economy humming along,' added Rogers. And Rogers noted that the Bond market is another area for people to question, asking themselves whether the US can service all of its debt. He says it's up to $37 trillion, and it's growing at almost $2 trillion every year. The survey also shows increased gas prices easing to just 2.7 percent. Medical care, college education, and rent increases were also lower every month. WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Watch the 22News Digital Edition weekdays at 4 p.m. on Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Business Insider
2 days ago
- Business
- Business Insider
Stock Market News Review: SPY, QQQ Tick Higher as U.S.-China Trade Talks End, Inflation Expectations Drop
Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) barely managed to finish Monday in positive territory following steep declines during the last trading hour. Confident Investing Starts Here: This morning, the U.S. and China began their second round of trade talks. At the center of discussions are China's export curbs on rare earth minerals, which are used in everything from chips to smartphones to electric vehicles. According to the Financial Times, the U.S. is considering easing restrictions on its chip exports if China agrees to increase the flow of its rare earths to the U.S. The U.S. is also considering easing restrictions on semiconductor software, aircraft parts, and ethane as it brings bargaining chips to the table. 'Our expectation is that after the handshake, then immediately after the handshake, any export controls from the U.S. will be eased, and the rare earths will be released in volume, and then we can go back to negotiating smaller matters,' said White House economic advisor Kevin Hassett. While day one of the discussions, which lasted roughly six hours, has ended, the negotiations will continue tomorrow morning. Treasury Secretary Scott Bessent described the conversation as a 'good meeting' while Commerce Secretary Howard Lutnick characterized it as 'fruitful.' Both men didn't provide any further details. President Trump said that the talks went well and that China should open itself up for trade. Meanwhile, inflation expectations are falling across the board. After rising to 3.6% in April following President Trump's reciprocal tariffs, the one-year inflation expectation for May dropped to 3.2%, according to the New York Fed's May Survey of Consumer Expectations. Long-term inflation expectations fell too, with the three-year at 3.0% and the five-year at 2.6%, down by 0.2% and 0.1%, respectively. On top of that, the corporate earnings growth outlook is rising, with the median one-year-ahead earnings growth expectation increasing by 0.2% to 2.7%. The S&P 500 ended the trading session with a 0.09% gain while the Nasdaq 100 fared slightly better with a 0.17% rise.
Qatar Tribune
2 days ago
- Business
- Qatar Tribune
US inflation expectations ease in May, New York Fed survey shows
Agencies Americans' anxiety about the future path of inflation eased in May, as they also grew more upbeat about the state of their personal finances, according to a report released on Monday by the New York Federal Reserve. The regional Fed bank reported in its Survey of Consumer Expectations that the outlook for inflation across all the horizons it measures retreated last month. A year from now, survey respondents see inflation at 3.2% versus 3.6% in April, while three years from now it's expected to be 3% versus 3.2%. Five years from now, inflation is projected to be 2.6%, compared to expectation of 2.7% in the survey for report found that respondents are expecting moderating price gains for gas, rent, medical care and college, while food costs a year from now are seen rising at a 5.5% rate, which would be the highest level since October 2023. Meanwhile, in May the year-ahead expected rise in house prices stood at 3%, down from 3.3% in moderation in the inflation outlook took place against a background of high uncertainty over the future of price pressures. Huge and ever-shifting tax hikes on imports imposed by the Trump administration are broadly expected by economists and policymakers to push up inflation, while depressing hiring and growth. The major question is whether the gain is a one-off or the makings of something more been little clarity on how much those tariffs will impact the economy, especially as President Donald Trump raises and lowers his import levies unpredictably. The survey period for the New York Fed report overlapped with some of the biggest shifts on tariffs, and the moderation in the readings for May will likely bolster officials' confidence that inflation is not gearing up for an extended breakout to higher levels. The Fed will almost certainly leave its benchmark interest rate steady in the 4.25%-4.50% range at the end of its June 17-18 policy meeting. Inflation remains above the U.S. central bank's 2% target and is not expected to moderate to desired levels soon, in an otherwise healthy economy. The New York Fed report also found that households upgraded their views on their incomes, earnings, hiring prospects and survey found households had 'slightly' improved views on their current financial situation in May, as respondents said access to credit improved relative to last year, while expectations of missing a debt payment declined.
