US household financial stress hits highest level since 2022
What's next: May CPI data arrives Wednesday, with markets expecting the Fed to hold rates on June 17 and raising odds of a hike later this year.
US households grew more anxious about their finances in May, with the share saying their situation was much worse than a year earlier rising to 13.3%, the highest level since July 2022, according to the Federal Reserve Bank of New York's Survey of Consumer Expectations. The combined share reporting conditions as somewhat or much worse reached 43.7%, the highest since January 2023. Inflation expectations changed little, with one-year expectations edging up to 3.5% while three- and five-year views held at 3.1% and 3%. Expected food and rent inflation rose, but gasoline expectations slipped. The survey comes ahead of Wednesday's consumer price index report and next week's Federal Open Market Committee meeting.