Recent data from the New York Fed indicates a significant easing of inflation fears among Americans in May. Optimism about inflation has increased as trade tensions between the U.S. and China have cooled, with consumers feeling more positive about the overall economy. The survey found that year-ahead inflation expectations have dropped to 3.2% from 3.6%, reflecting a broader decline across various timeframes. Additionally, short-term inflation expectations also fell, contributing to an improved financial outlook for consumers.