According to the New York Fed's survey of consumer expectations, released on Monday, the U.S. one-year ahead inflation expectations were 2.7% in April, down from 2.9% in March. It was the lowest level since mid-2013.

The U.S. three-year ahead inflation expectations rose to 3.0% in April from 2.9% in March.

The Fed wants to hike its interest rate later this year but wants to be sure that the consumer price inflation is on track to reach its 2% target.