Consumer confidence has taken a hit as unemployment fears surge to their highest levels since the COVID-19 pandemic, according to a New York Fed survey released Monday.
The probability of a higher unemployment rate in a year rose to 44%, up 4.6 percentage points from February and the highest level since April 2020.
Expectations for inflation also took a turn for the worse, with respondents foreseeing an increase of 3.6% in prices one year from now, the highest reading since October 2023.
The survey showed a surge in worries over the labor market, while concerns about food and rent prices also rose. Respondents expect gasoline to rise by 3.2%, and medical care costs are expected to jump by 7.9%.
The survey is consistent with other measures showing consumer concern over the impact of tariffs on inflation and the stock market. The Federal Reserve’s Survey of Consumer Expectations found that respondents’ expectations for equities were at their lowest since June 2022.
The findings suggest a growing sense of uncertainty among consumers, which could have implications for the economy and financial markets.
Source: https://www.cnbc.com/2025/04/14/unemployment-fears-hit-worst-levels-since-covid-fed-survey-shows.html