Americans Growing More Confident Inflation Won’t Spike Again, Fed Survey Finds

A new consumer survey from the Federal Reserve Bank of New York indicates Americans are feeling more optimistic that inflation is unlikely to rise sharply in the near future.

The June report, released Tuesday, found that consumer inflation expectations fell for the second consecutive month, dropping to 3%. That level marks a return to where expectations stood at the beginning of the year and suggests growing confidence that prices won’t spike again—despite ongoing concerns over tariffs and their potential economic impact.

The survey also showed improvements in job security and income growth expectations. However, that optimism was tempered by concerns over personal finances. Consumers reported expectations of tightening bank accounts and a drop in spending confidence, bringing those levels back down to what was seen in January.

The report reflects a mixed but cautiously hopeful economic outlook from the public, balancing a more stable view of inflation with ongoing concerns about financial pressure at the household level.

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