U.S. Household Financial Concerns Reach Two-Year High

A New York Federal Reserve survey shows U.S. households are more worried about their finances than at any point since July 2022. The share of respondents who say their situation is “much worse” than a year ago rose to 13.3%, and a total of 43.7% say their finances are “much” or “somewhat” worse, a record since early‑2023. Inflation expectations for the next year edged up only modestly to 3.5%, while expectations for fuel fell slightly and food and rent prices are expected to rise.

The survey also noted that 36% of households anticipate a further worsening of their situation, compared with 22.9% who expect improvement. Analysts link the growing anxiety to higher energy prices driven by geopolitical tensions, including the war in Iran, and expect the Federal Open Market Committee to consider a rate hike at its next meeting, which could deepen financial strain for many families.