New York Fed poll shows highest inflation expectations of all time – Economy Bitcoin News

American inflation expectations have risen, according to the results of the latest New York Federal Reserve poll on consumer expectations. The assumed inflation rate reached its highest level since 2013 and in addition to the forecast lower purchasing power, consumer debt and fears of a real estate bubble are rising in the USA.

New York Fed Consumer Expectations Report Expects 4.8% Inflation Next Year8%

U.S. citizens are concerned about inflation after the government locked the country in lockdown for more than a year and the Federal Reserve increased M1 supply by 30%. Inflation has been so bad recently that American supermarkets are buying up to 25% more supplies to forestall inflation and the potential higher supply chain costs it may incur.

From 2020 to the present day, bacon has increased by 14%, bread by 7%, milk by 8% and oranges by 8%. The cost of wood has risen significantly, the cost of gas has skyrocketed, and the real estate market is full of hedge funds and Wall Street guys.

New York Fed survey shows the highest inflation expectations of all time Although Fed members noted that inflation will only be “transitory,” the New York Fed said in its latest consumer expectations poll that inflation is expected to be 4.8% over the next 12 months. This metric is the highest since 2013, and an American’s perception of personal finances has deteriorated.

“Households’ perception of the current financial situation has deteriorated compared to last year, and more respondents said they were worse off compared to last year,” the report said. The New York Fed poll adds:

In contrast, the respondents were somewhat more optimistic about the financial situation of their households in the coming year.

American consumers are taking out more loans and uncertainty about the housing market for the next year is higher than ever before

Consumers polled by the New York Fed had also shown that the interest rate on one or more types of credit rose from 35% in October 2020 to 45% in February 2021.

“The increase was broad across all credit types and credit rating groups, although it was largest for mortgage refinancing applications,” the Survey of Consumer Expectations said. Despite the increasing number of Americans looking for credit, the overall loan rejection rate has soared to its highest level since October 2018.

New York Fed survey shows the highest inflation expectations of all time

Meanwhile, when stimulus money was running out, Peter Schiff’s web portal schiffgold.com published a report on “Americans whipping their credit cards.” Federal Reserve data from the report shows consumer debt rose 10% in May, and the report stressed that “Americans now owe a total of $ 4.28 trillion in consumer debt.”

The numbers come from debt securities like student loans, credit cards, and car loans. The data doesn’t include mortgages, and the report shows consumer debt rose $ 35.3 billion in May.

The economist and gold bug Peter Schiff does not believe that the US Federal Reserve will raise interest rates anytime soon, as the foundation of the economy is solidified by credit.

“The reason they won’t fight inflation in the future is the same reason they won’t fight it now – because they can’t do it without collapsing the economy,” Schiff said.

The latest New York Fed poll of consumer expectations also shows that Americans may be concerned about the US housing market as consumers said house prices will continue to rise 6.2% a year, but doubts about this Outlook was the highest the New York Fed poll has ever recorded.

Americans are to notice that today there are buyers trying to bid on properties they have never seen or visited. In April, 47% of homes listed in the US moved to pending status in less than seven days.

What do you think of the New York Fed’s latest consumer expectation survey breaking record in the series? Let us know what you think on this matter in the comments below.

Tags in this story

4.8%, Auto Loans, Central Bank, Consumer Debt, Consumers, Credit, Credit Cards, Debt, Debt Products, Economy, Federal Reserve, Food Inflation, Gas Inflation, Inflation, Wood Inflation, New York Fed, Peter Schiff, Purchasing Power, Housing Bubble, Housing Market, Student Loans, Survey , Consumer Expectation Survey

Photo credits: Shutterstock, Pixabay, Wiki Commons, Federalreserve.gov/datadownload/Chart, Survey of Consumer Expectations

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