A new report released Monday by the Federal Reserve Bank of New York found that U.S. consumers see inflation easing, but that worries about the labor market and managing household debt loads rose. The New York Fed's latest Survey of Consumer Expectations found that respondents continue to see inflation at 3% a year from now and 2.8% in five years, findings that are unchanged from the prior month.
Expectations for growth in household incomes increased by 0.1 percentage points to 3.1%, while spending growth expectations increased by the same amount to 5.0%. The report comes ahead of the release on Wednesday of inflation data for the month of August when the Labor Department releases the latest figures for the consumer price index .
Markets will be closely monitoring the CPI print as they assess how much the Federal Reserve will cut interest rates by when the central bank's policy committee meets next week. The benchmark federal funds rate currently sits at a range of 5.25% to 5.50%, the highest level in 23 years, while analysts debate whether the Fed will lower rates by 25 or 50 basis points.