Prior was 58.4 • Current conditions 55.4 vs 62.5 prior • Expectations 46.8 vs 54.5 prior • 1-year inflation 5.4% vs 5.3% prior • 5-10 year 3.3% vs 3.0% prior These numbers are terrible. This is the lowest reading ever in this series, which dates back to the 1970s. There's very good reason to think that's an exaggeration as politics infects the surveys but it's still headed quickly in the wrong direction. For the Fed, that jump in long-term inflation expectations is a major red flag and the kind of thing that will make them panic with more-aggressive rate hikes. (full story)

The numbers: The University of Michigan’s gauge of consumer sentiment fell sharply to a record low reading of 50.2, down from a May reading of 58.4. Economists polled by the Wall Street Journal had expected an June reading of 59. The level is comparable to the low point reached in the middle of the 1980 recession, U Mich said. Americans’ expectations for overall inflation over the next year rose to 5.4 in June from 3.3% in May, while expectations for inflation over the next 5 years jumped to 3..3% from 3% in the prior month. Key details: According to the UMich report, a gauge of consumers’ views on current conditions ... (full story)