Recent surveys from the New York Federal Reserve highlight a significant rise in short-term inflation expectations, with figures now at 3.6%, up from 3.1%. This surge comes alongside growing fears of unemployment, which have reached their highest levels since the pandemic. Consumers are increasingly concerned about the prospect of rising joblessness as inflation outlooks take a troubling turn, exacerbated by new tariffs that are predicted to fuel further price increases. The Federal Reserve finds itself under pressure as it navigates these challenges, with market-based inflation measures showing significant volatility. While long-run inflation expectations appear to stabilize, short-term views continue to climb, leaving both consumers and the Fed grappling with uncertainty in the economic landscape.