@ Wall Street
IHS Global Insight expect personal income to rise 0.3% in May, after rising 0.4% in April. The weak May jobs numbers were not helpful for income and spending growth. In May, private payrolls added 83,000 - their weakest showing since June 2010 - and the unemployment rate increased to 9.1%.
Consumer spending should increase 0.1% in nominal dollars, but after adjusting for inflation should fall 0.1%, its first drop since January 2010, dragged down by a steep drop in vehicle sales resulting from supply problems.
The increase in the core PCE price index should stay at 0.2% in May, with the year-on-year rate rising to 1.2% from 1.0% in April. Spiraling inflation is currently not one of our fears, given the considerable slack that exists in the labor market and the sluggish level of wage growth. In addition, inflation expectations as measured by the Reuters/University of Michigan survey have begun to decline due to falling gasoline prices.
@ The White House
In the morning, the President will receive the Presidential Daily Briefing in the Oval Office. Later in the morning, the President and the Vice President will meet with Senate Majority Leader Harry Reid in the Oval Office.
In the afternoon, the President will welcome Major League Soccer champions, the Colorado Rapids to the White House to honor their 2010 season and their MLS Cup victory. In conjunction with the ceremony with the President at the White House, the Colorado Rapids will hold a soccer clinic for children of military families on the South Lawn.
In the evening, the President and the Vice President will meet with Senate Minority Leader Mitch McConnell in the Oval Office.
