NY Fed Says April 1-Year Ahead Expected Inflation 3.3% Vs March's 3%; April 3-Year Ahead Expected Inflation 2.8% Vs March's 2.9%; April 5-Year Ahead Expected Inflation 2.8% Vs March's 2.6%; April Year Ahead Expected Home Price Rise At 3.3% Vs March's 3%; Year-Ahead Expected Home Price Rise Highest Since July 2022; Respondents See Higher Future Prices For Food, Rent, Medical, Gas; Expected Future Spending Levels Rise
Portfolio Pulse from Benzinga Newsdesk
The NY Fed reported an increase in the expected inflation rates for the next 1, 3, and 5 years, with a notable rise in the year-ahead expected home price rise to 3.3%, the highest since July 2022. Respondents anticipate higher future prices for food, rent, medical care, and gas, alongside an increase in expected future spending levels.
May 13, 2024 | 3:03 pm
News sentiment analysis
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NEGATIVE IMPACT
The report from the NY Fed indicating rising inflation expectations and higher anticipated costs for living essentials may lead to increased market volatility, potentially impacting the SPDR S&P 500 ETF Trust (SPY) as investors reassess risk and growth expectations.
The SPDR S&P 500 ETF Trust (SPY) is a broad measure of the U.S. stock market and is sensitive to changes in inflation expectations. Higher inflation can erode real returns on investments, leading to shifts in investor sentiment and potentially causing short-term price declines in SPY as the market adjusts to the anticipated higher costs of living and spending.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80