NY Fed's November Survey of Consumer Expectations was stable
NY Fed's November Survey of Consumer Expectations was stable, with the median 1-year ahead unchanged at 3.0% for an eighth straight month. And expectations for the 3-year horizon dipped slightly to 2.9% from October's 3.0%. The Fed also noted inflation uncertainty increased slightly for both the 1- and 3-year horizons. The outlook on home prices showed a dip to 3.1% in the median expectation for home price appreciation, from 3.3%, and has come down from 3.9% in June. Gas prices are also seen to be on the decline, with the 1-year ahead expected gas price change falling to 4.2%, the lowest since December 2017, from 4.5% in October. This NY Fed report won't alter the likely decision from the FOMC to increase rates on December 19, but it will keep policymakers cautious on the 2019 rate path, and especially the more dovishly inclined, including next year's voters Bullard and Evans.