US consumers more worried about job market in December, New York Fed report saysÂ

Core Insights - Americans expressed increased concerns about the job market in December, with the outlook for finding a job being the worst since the survey began in 2013, particularly among households earning under $100,000 per year [1][2] Job Market Concerns - Job market anxieties varied in December, with expectations of a rising unemployment rate decreasing compared to the previous month, while the probability of job loss increased [2] - There was a decline in the likelihood of voluntarily leaving a job in December compared to November [2] Inflation Expectations - Households raised their near-term inflation expectations, with the one-year projection increasing to 3.4% from 3.2% in November, while three- and five-year expectations remained steady at 3% [3] - Short-term inflation expectations are volatile, but the increase in the year-ahead inflation projection aligns with rising price pressures attributed to tariff increases from the Trump administration [4] Federal Reserve Actions - The Federal Reserve reduced its benchmark interest rate by 0.25 percentage points to a range of 3.50%-3.75% to balance job market risks against persistent inflation above the 2% target [5] - Fed officials anticipate a modest decline in the unemployment rate from 4.6% in November, alongside moderating inflation pressures that will still exceed the central bank's target [5] Household Financial Sentiment - Households reported a more positive outlook on their current and expected financial situations in December, despite facing challenges in accessing credit [6] - Expectations of missing a debt payment rose to the highest level since April 2020, indicating growing financial concerns among households [6]