Consumer expectations for the price of gas and food fell in June, but inflation expectations ticked up.
Economic uncertainty is seeping into consumer expectations, which can become something of a self-fulfilling prophecy, an Aspen Institute economist says.
Consumers still forecast about 3% inflation, according to a New York Federal Reserve Bank survey. Responses also reflect a looser job market.
Consumers’ price expectations influence how they save and spend their money, potentially creating self-fulfilling prophecies.
That type of borrowing helped fuel the housing crisis.
Legislators call for more oversight after recordings appear to show N.Y. fed cozying up to institutions it is supposed to regulate.
