NY Fed finds higher expected longerrun inflation expectations
NY Fed Americans projected higher levels of credit delinquency
NY Fed Expected home price, rent cost increases ebbed
in September

NEW YORK, Oct 15 Reuters Americans said they expected higher inflation over the longer run last month, as their expectations of credit turbulence rose to the highest level since April 2020, the Federal Reserve Bank of New York said in a report on Tuesday.

While inflation a year from now is seen holding steady at 3, three years from now it is seen at 2.7 from Augusts 2.5 estimate, and at 2.9 in five years, from 2.8 in the August survey, the bank said in its latest Survey of Consumer Expectations.

Meanwhile, while perceptions and expectations for credit access improved, the report found that expected credit delinquency rates continued to rise and hit the highest level in over four years. The report noted the average expected probability of missing a debt payment over the next three months rose for a fourth straight month to 14.2, from Augusts 13.6, suggesting some Americans are facing increased issues with managing their borrowing.

While that perceived probability was highest among households with incomes below 50,000, the largest increase was among respondents with household income above 100,000. Those respondents saw the greatest chance of falling into delinquency in 10 years.

The New York Fed data comes as central bankers are debating how aggressively theyll need to press…