Fed's quantitative tightening likely to hit consumer spending

London

TIGHTER money, rising interest rates, low savings and high debt could confound optimistic US, European and Asian economic expectations.

This is the view of Lacy Hunt, economist at Hoisington, a specialist US Treasury fund manager. Mr Hunt, an economic forecaster with an outstanding track record, has coined the term "QT" ie quantitative tightening. QT is the polar opposite of QE, or quantitative easing.