According to a report by CNBC, the New York Federal Reserve announced on Monday (9th) that consumer concerns regarding inflation in the U.S. eased in May, primarily due to President Trump's postponement of stricter tariff measures. This trend is also reflected in the decline of various inflation expectation data and an increase in consumer confidence regarding employment and financial markets.

The New York Fed's "Consumer Expectations Survey" indicated that Americans' inflation expectations for the coming year dropped to 3.2%, a decrease of 0.4 percentage points from April; expectations for the next three years also decreased by 0.2 percentage points to 3%; while the five-year expectation edged down from 2.7% to 2.6%. Although these three figures are still above the Federal Reserve's target of a 2% annual inflation rate, they show clear progress and have alleviated previous concerns stemming from Trump's frequent remarks on tariff issues.

As inflationary pressures ease, Federal Reserve officials are optimistic about Trump's initial threats to impose a universal 10% tariff on all U.S. imports, as he quickly deferred these measures, urging countries to complete trade-related negotiations with the U.S. within a 90-day timeframe. Compared to surveys published by the University of Michigan and The Conference Board, the New York Fed's survey data exhibits less volatility. The results are good news for the White House, as government officials are working hard to assuage concerns about tariffs potentially leading to inflation.

Kevin Hassett, Director of the White House Council of Economic Advisers, stated on CNBC on Monday morning, "In terms of any inflation measure, the decline has set the largest record in over four years. Although tariff revenues continue to grow, inflation has been declining, which contradicts what others have suggested but aligns well with what we have consistently stated."

The core Personal Consumption Expenditures (PCE) price index, a preferred inflation measure of the Federal Reserve, was 2.1% in April, and the core PCE, excluding volatile food and energy prices, was at 2.5%, the lowest annual increase in over four years. Federal Reserve officials believe this metric better reflects long-term trends, and some officials think the current data indicates that short-term price pressures remain manageable, and adjustments to interest rates do not need to be rushed.

The survey indicated that the public's expectations for prices of most goods and services have declined. However, respondents expect food prices to rise by 5.5% in the coming year, an increase of 0.4 percentage points from May, marking a new high since October 2023. Conversely, the anticipated increase in gasoline prices is expected to slow to 2.7%, a decrease of 0.8 percentage points. Additionally, expectations for healthcare, college tuition, and rent increases also showed monthly declines. The survey also revealed positive changes in the job market, with the proportion of individuals expected to be unemployed in the next 12 months declining by 0.5 percentage points to 14.8%. Other areas showed optimistic trends as well, with the likelihood of being unable to pay minimum debts in the next three months dropping by 0.5 percentage points to 13.4%, the lowest level since January this year. Respondents' confidence in the stock market also increased, with 36.3% expecting it to rise in a year, an increase of 0.6 percentage points.