Consumer Outlook , Plunges Amid Fears of , More Price Hikes Ahead.<br />CNN reports that sentiment about the economy among <br />consumers in the United States has plummeted <br />to the lowest level in the past six months.<br />According to the latest consumer survey by the <br />University of Michigan, consumers are also bracing <br />for more price increases in the year ahead. .<br />The consumer expectations gauge, <br />which is closely monitored by the White House, <br />dropped 13%, representing the most significant <br />single month decline since mid-2021.<br />The latest news is still better than <br />last May when inflation was at 4% <br />compared to the current 3.5% reading.<br />However, CNN points out that despite inflation <br />being lower than the same time last year, the numbers <br />have been moving in the wrong direction.<br />The trajectory has shifted <br />economist expectations for <br />the Federal Reserve to cut rates. .<br />The latest Fed report saw expectations <br />for year-ahead inflation increase <br />to 3.5% from the 3.2% forecast in April. .<br />At the same time, long-run <br />expectations for inflation also <br />increased to 3.1% from April's 3.0%. .<br />According to Chicago Federal Reserve <br />President Austan Goolsbee, the latest data , "bodes awful for progress on inflation.".<br />There isn’t, at this time, <br />much evidence in my view that <br />inflation is stalling out at 3%, Austan Goolsbee, Chicago Federal Reserve President, via CNN
