PREVIEW

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