US inflation expectations worsen in the medium term

The New York Fed survey showed that the median forecast for one-year inflation rose 0.3% to 6.6% in May while remaining unchanged at 3.9% over three years.

The median forecast for household spending growth rose to 9.0%, and the average probability of missing a minimum debt payment over the next three months rose 0.4% to 11.1% in May. Survey data showed that unemployment expectations rose for the third month in a row in May to hit the highest level since February 2021, and the average probability of leaving a job over the next year rose to 20.3% in May from 19.0% in April.