Latest inflation expectations from the Federal Reserve show some interesting shifts. The 1-year outlook ticked down slightly to 3.2% from 3.24%, while both 3-year and 5-year projections held steady at 3.0%.

What caught my attention? Household financial sentiment took a noticeable hit this month. People are feeling the squeeze.

On the flip side, there's a silver lining in employment outlook—unemployment expectations dropped a solid 0.4 percentage points to 42.1%. That's a meaningful improvement in how Americans view the job market ahead.