Any pause/ turn in Fed rate cycle to have a quick effect on US economy - Citi
|Analysts at Citi group offer their take on the US economy, in the wake of the Fed’s tightening cycle and Trump’s fiscal stimulus.
Key Quotes:
“Expect any pause or turn in the rate cycle to have a quick effect.
Those sectors of the economy sensitive to rates (citing housing, autos) showing weak underying trend.
Surge in fiscal stimulus a sugar high, awkwardly impacting US economy.
Large budget deficit, rundown of balance sheet, foreigners less keen on the US debt.
Markets not pricing much ECB tightening.”
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