According to reports, the latest survey released by the New York Federal Reserve Bank indicates that concerns among American consumers regarding inflation eased in May, primarily due to President Trump's postponement of stricter tariff measures. This trend is also reflected in falling inflation expectation data and increased consumer confidence in employment and financial markets.

The survey reveals that American citizens’ inflation expectations for the coming year have decreased to 3.2%, a reduction of 0.4 percentage points from April; expectations for the next three years also dipped by 0.2 percentage points to 3%; while the five-year expectation slightly declined from 2.7% to 2.6%. Although these three figures still exceed the Federal Reserve's target of 2% annual inflation, they show evident progress, reversing concerns previously triggered by Trump's frequent statements on tariffs.

With inflation pressures easing, Federal Reserve officials view Trump's initial threat to impose a 10% tariff on all U.S. imports optimistically, but he quickly suspended these measures, urging countries to complete trade negotiations with the U.S. within a 90-day timeframe. Compared to data released by the University of Michigan and The Conference Board, the survey results from the New York Federal Reserve Bank exhibit less volatility. This outcome is good news for the White House, as government officials are trying to assuage public fears about tariffs potentially triggering inflation.

Kevin Hassett, director of the White House's National Economic Council, stated on Monday morning on CNBC, "No matter which inflation measurement you look at, the decline in inflation is the largest recorded in more than four years. Despite continuous increases in tariff revenues, inflation is falling, which contradicts the narrative others have suggested, but is consistent with what we have been stating all along." The core Personal Consumption Expenditures (PCE) index recorded an annual increase of 2.1% in April, and when excluding the volatile food and energy prices, the core PCE stands at 2.5%, marking the lowest annual increase in over four years.

The New York Fed's survey also shows that the public's price expectations for 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, the highest since October 2023. On the other hand, expectations for gasoline price increases are expected to slow to 2.7%, a decrease of 0.8 percentage points. Additionally, expectations for the rising costs of healthcare, university tuition, and rent have also seen monthly declines. This survey also indicates positive changes in the employment market, with the expected percentage of people losing jobs in the next 12 months dropping by 0.5 percentage points to 14.8%. Other areas are also showing optimistic trends: the likelihood of being unable to meet minimum debt payments in the next three months has decreased by 0.5 percentage points to 13.4%, the lowest since January of this year. Respondents’ confidence in the stock market has also strengthened, with 36.3% expecting the market to rise in one year, an increase of 0.6 percentage points.