AI Data Insight
The newly released median of US one-year ahead inflation expectations for the second quarter of 2026 declined to 3.4625% from the previous value of 3.6368%. Although the easing of short-term price pressures and flat long-term expectations provide some comfort to the Federal Reserve, public pessimism regarding future employment and financial conditions is simultaneously intensifying. With hidden concerns about domestic demand emerging, it remains difficult for the Fed to initiate a substantial rate cut cycle in the short term.