Americans showed less concern about inflation and hiring in January, per the NY Fed. Inflation expectations for one year dropped to 3.1% from 3.4%, while job prospects improved. However, households still predict a higher unemployment rate in the future. Credit may be harder to obtain, with financial situations also downgraded.

The Fed cut interest rates last year to support the job market and control inflation. Officials see inflation easing this year due to lower tariff pressures. Longer-term inflation expectations remain stable. Fed Vice Chair Jefferson believes the Fed’s commitment to bringing inflation down is credible and inflation pressures will ease over time.

Read more at Yahoo Finance: January near-term expected inflation lower amid better job market views