By Arlenys Tabare
According to a report published this Monday by the Federal Reserve Bank of New York, The financial worry of American households has reached its highest level in the last four years in the midst of rampant inflation and economic uncertainty.
The results of the Fed survey showed that The total number of people who consider that their economic situation is “somewhat worse” than a year ago increased to 43%, while the percentage of people who believe that their economic situation is “much worse” increased to 13% in one year.
Regarding the prospects for next year, 22% indicated that the economic situation will improve, compared to 36% who predict that the country’s economic scenario will worsen considerably.
The report also highlights that inflation prospects for this year increased to 3.5% and for five years to 3%, and given the skyrocketing gasoline prices, Consumer expectations fell by up to 5%. While, regarding other expenses such as food or rent, expectations increased to 5.8% and 7.4% respectively.
At the moment, the inflation rate is at 3.8%, its highest level since 2023; Although the Fed’s monetary policy regulators have boosted interest rates to control consumer spending and curb inflation in recent months, the spike in prices also occurs at a time of great political tension with the development of the conflict in the Middle East.
Recently, the analysis of the latest edition of the Fed’s Beige Book was released, which reveals that, in recent weeks, American consumers have felt the strong pressure of rising energy prices. “Prices increased at a moderate to strong pace in fashioned, and most districts reported higher inflation than in the previous report,” the report highlights.
This week, Bureau of Labor Statistics to release report on inflation data based on May consumer price index; So far it is expected that the inflation rate in fashion increased to more than 4% and the underlying one to 2.9%.
For its part, the next meeting of the Federal Open Market Committee (FOMC) will be held on Wednesday, June 17 to hear the Fed’s decision on interest rates.
Keep reading:
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