U.S. households felt more pessimistic about their current and future financial situations in November, according to a New York Federal Reserve report. However, views on the job market improved, with expectations of higher unemployment decreasing and the likelihood of losing a job dropping to its lowest level since December 2024.

The report comes ahead of a Federal Reserve policy meeting where a rate cut is expected to address weaknesses in the job market. Despite opposition, some officials believe focusing on lowering inflation should be the priority in monetary policy.

Inflation expectations remained steady in November, with future inflation projected at 3.2% in a year and 3% in three and five years. Home price expectations also remained stable, but medical costs were anticipated to increase by 10.1%, the highest since January 2014.

Positive trends were seen in future earnings and income growth in November, according to the report released by the New York Fed.

Read more at Yahoo Finance: US households’ personal finance worries grew in November, New York Fed says