Inflation expectations among Americans in August rose to the highest ever recorded in the Federal Reserve Bank of New York’s survey of consumers while their outlook for home-price growth moderated.
Nonfarm payrolls increased 235,000, the slowest pace since January, as a Delta-driven resurgence of the pandemic kept many consumers at home.
A speech on Friday by Fed Chairman Jerome Powell had the potential of sending mortgage rates into gyrations. Instead, he soothed the markets.
The consumer sentiment index from the University of Michigan plunged 13.5% in August to 70.2, the gloomiest outlook since December 2011.
Housing starts rose in June but the number of permits dipped, reflecting the roadblocks homebuilders continue to face such as elevated lumber prices and supply chain issues.
The Consumer Price Index jumped 0.9% in June and 5.4% from the same month last year, according to Labor Department data released Tuesday.
The U.S. economy added 850,000 jobs in June, the biggest gain in 10 months, boosted by hiring in retail and residential construction, according to a Labor Department report.
While Americans are feeling better about the economy, the data showed their outlook on housing was souring.
Policymakers indicated rate hikes could come as soon as 2023, after saying in March that they saw no increases until at least 2024.
Homebuilder confidence plunged in June as material prices rose and supply chain shortages crimped inventory, resulting in fewer homebuyers.
