Macro Briefing: 1 July 2022

* Supreme Court limits EPA rules for curbing power plant emissions
* US consumer spending growth slowed in May, raising concerns for economy
* US jobless claims hold steady, suggesting upbeat labor market outlook
* Eurozone mfg activity continues to slow, weakening to 22-month low in June
* Eurozone inflation hits record pace in June
* US dollar bucks the trend vs. most assets with a Q2 gain
* Atlanta Fed’s revised nowcast for US GDP turns negative for Q2:

Low odds for a soft economic landing? “Policymakers have lost control of the narrative so they have to act, but they would be geniuses if they can soft land this thing,” says Kit Juckes, macro strategist at Société Générale. He adds that recent visits to clients across Europe indicate that “every single one thinks there’s going to be a hard landing.”

US consumer spending’s outlook is worrisome beyond the summer. “We still think services spending will carry consumer spending through the summer, but once Labor Day comes, the boost from services may not be enough to keep overall consumer spending in the black,” predict economists at Wells Fargo.