NEW YORK (Reuters) – Americans said last month that access to credit was at its tightest level in almost a decade as they braced for high inflation in the next few years, the New York Fed reported. said. Monday.
In a March survey on consumer expectations, the bank found that the percentage of households saying it was harder to get credit rose to the highest level in a survey dating back to 2014 compared to a year ago. He is also more pessimistic about future credit availability, with a rising percentage of households expecting it to be harder to get credit a year from now. ”
Meanwhile, households expect inflation to be 4.7% a year from now, compared to 4.2% in February. This was the first year-to-date increase in inflation expectations since October. Three years from now inflation will be 2.8%, down from 2.7% the previous month, and five years from now a survey respondent said he expects it to be 2.5%, down from 2.6% the previous month. .
Respondents to the New York Fed survey expect home prices to rise 1.8%, despite expectations of higher near-term inflation, while petrol, food and rent costs fall. I see you doing.
Rising inflation expectations could pose a new challenge to the Federal Reserve’s efforts to contain inflation. Central bankers widely believe that where the public expects price pressures to head will have a strong impact on current inflation. Last year, the Fed has embarked on a very aggressive campaign to bring inflation down to 2% from the current 5%.
The Federal Reserve’s rate hikes are meant to make credit more expensive, so it’s no surprise that more households report having trouble taking out loans. That said, survey respondents said their current and future financial situation improved in March, with both household income and spending expected to rise.
The Federal Reserve’s report doesn’t mention the circumstances, but the investigation took place in a month when the financial system was rattled by the failure of the Silicon Valley Bank and troubles at other financial institutions. banking community. Fed officials have stressed that they believe the banking system is robust and the problem is isolated.
Reported by Michael S. Darby.Edited by Chiju Nomiyama
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