Household finance outlook hits highest since February 2020, New York Fed survey shows
Optimism about household finances hit a multiyear high following Donald Trump’s presidential election victory in November, according to a New York Federal Reserve survey released Monday.
Optimism about household finances hit a multiyear high following Donald Trump’s presidential election victory in November, according to a New York Federal Reserve survey released Monday.
Households expecting their financial situations to be better a year from now jumped to 37.6%, an increase of about 8 percentage points from October, the central bank’s survey of approximately 1,300 heads of households showed. That was the highest reading since February 2020, just before the Covid-19 pandemic hit.
In conjunction with the rise of optimism, the level of those who expect their financial situation to get worse moved down to 20.7%, off nearly 2 percentage points from a month ago and the lowest since May 2021.
The results follow Trump’s Nov. 5 victory that will send him back to the White House for a second nonconsecutive term. The Republican has promised a menu of lower taxes and deregulation to boost growth.
Though the macro economy has showed solid growth through 2024, consumers remain stymied by price increases that spurred a cumulative increase in the consumer price index inflation gauge of more than 20% under President Joe Biden.
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