Consumer Sentiment Basically Steady

Consumer sentiment, at 98.2, ended June down from May's recent peak at 100.0 and roughly in trend with where it has held for most of the past year, in fact exactly where it was in June 2018. Expectations slumped more than 4 points in the month to 89.3 to offset nearly 2 points of improvement in current conditions. Inflation expectations improved slightly from June's preliminary report yet still point to a tangible break lower, down 2 tenths for the year-ahead outlook to 2.7 percent and down 3 tenths for the 5-year outlook to 2.3 percent. For the Federal Reserve, the steady showing for sentiment will support their confidence in consumer spending but the weakness for inflation expectations, the primary importance of which is routinely underscored by Jerome Powell, raises the chances however incrementally for a rate cut at next month's FOMC.