Rising U.S. Inflation Expectations and Deteriorating Employment Outlook May Hinder Fed's Rate Adjustment This Month

Odaily According to the New York Fed's monthly survey, U.S. inflation expectations rose in December, while views on job opportunities hit their lowest level in at least 12.5 years. The report indicates that consumers expect prices to rise by 3.4% over the next year, up from 3.2% in November. Consumers' estimated probability of finding a new job after becoming unemployed dropped to 43.1%, the lowest level since the bank began its Survey of Consumer Expectations in mid-2013. These figures highlight the divergence among Fed officials between those more concerned about inflation and those who see greater risks from rising unemployment. This gap is likely to hinder the Fed from adjusting interest rates at its next policy meeting later this month. (Jin10)