The latest survey results released by the New York Fed on December 9 are quite interesting—American households are now feeling tighter with their wallets.

Data from November shows that people's assessment of their current financial situation has clearly declined, and expectations for the next year aren't very optimistic either. However, there is some good news on the job front: fewer people are worried about unemployment, the willingness to voluntarily switch jobs has dropped, and the probability of unemployment has fallen to its lowest point since December last year. It seems that people are more inclined to hold onto their jobs rather than make a change.

Inflation expectations overall remain stable. Short-term ( one-year ) inflation expectations stayed at 3.2%, while the three-year and five-year expectations both held at 3%. Home prices are expected to rise by 3%. But one number really stands out—the one-year expectation for medical costs has soared to 10.1%, the highest since January 2014. Americans are truly feeling the pinch of rising healthcare expenses.

Expectations for other goods prices haven't changed much. Income and wage growth expectations remain positive, which helps cushion the pessimism a bit.

The signals from this report are clear: ordinary people aren't very optimistic about the near term, but still have some confidence in long-term inflation and the job market. For the crypto market, this divergence in expectations could affect risk asset allocation—cautious in the short term, but planning for the long term.