Fed Chair Jerome Powell said at the central bank's last meeting that he sees recent lower readings on U.S. inflation as "transitory," and likely to pick back up later this year. Data shows the market doesn't believe him and neither do everyday Americans.

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Data: Federal Reserve Bank of New York; Chart: Axios Visuals

The bottom line: The 1-year outlook on inflation among U.S. consumers fell by the most in 2 years last month, and is the third-largest drop since the survey was launched in mid-2013, according to the New York Fed.

Details: The decline in inflation expectations was broad-based across income groups, the survey found. Home price change expectations remained stable, but at very low levels. Fed officials also noted that respondents were more "optimistic about their households' overall financial situation and about the labor market."

  • The outlook for inflation over the next 3 years also declined significantly, showing that medium-term inflation expectations also have fallen.

Go deeper: Weak inflation stokes speculation the Fed may cut interest rates

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McMaster: Trump's peaceful transition comments are a "gift to our adversaries"

President Trump's refusal to commit to a peaceful transfer of power if he loses November's presidential election is a "gift to our adversaries," Trump's former national security adviser H.R. McMaster said Sunday.

The big picture: McMaster, a retired three-star general, said that the American people must understand that the military will have "no role" in a presidential transition and that it's "irresponsible" to even talk about it as a possibility.

Trump says Supreme Court ending Obamacare would be "a big WIN"

Photo: Spencer Platt/Getty Images

President Trump on Sunday tweeted that the Supreme Court invalidating the Affordable Care Act would be "a big WIN for the USA!"

Why it matters: Democrats have argued that confirming a Trump-appointed justice to the Supreme Court would put the Affordable Care Act, which protects pre-existing conditions, in jeopardy. Trump's Supreme Court pick, Amy Coney Barrett, has written that she disagreed with Chief Justice John Roberts when he ruled to uphold the law.

Trump sees court fight as virus respite

Spotted at Trump's rally last night at Harrisburg International Airport in Middletown, Pa. Photo: Joshua Roberts/Reuters

At a rally in Pennsylvania last night, President Trump basked in adulation for Judge Amy Coney Barrett and said, "She should be running for president!"

Why it matters: She might as well be. The Trump campaign is thrilled to be talking about something besides the president's handling of COVID, and it's going all-in to amp up the court conversation.