A survey by the New York Federal Reserve has revealed that household spending is expected to decline significantly over the next year. The survey of consumer expectations for April showed that the outlook for spending fell by half a percentage point to an annual rate of 5.2 percent, the lowest level since September 2021. The inflation outlook also declined by 0.3 percentage points over the next year. Respondents expect an inflation rate of about 4.4 percent in the next 12 months, well above the Fed's 2 percent inflation target. The results come after the Fed approved its 10th consecutive interest rate hike, raising the benchmark Fed funds rate to 5 percent to 5.25 percent.