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Fed's quantitative tightening likely to hit consumer spending

QT is expected to result in additional downward pressure on money growth and slower economic growth in 2018

In the past few years, consumer spending has been fuelled by a slump in saving rates and a further increase in debt. But growth in real incomes is weak and overall corporate profitability is overstated.


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...

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