Financial Conditions Tighten on Still-Robust US Consumer Demand
The three trading rules which have dominated for decades apparently remain intact: don’t fight the Fed, don’t bet against the dollar, and never, ever underestimate the US consumer. Retail sales rose at the fastest pace in two years in January, providing more evidence that aggregate demand in the American economy isn’t slowing as much as the Federal Reserve might prefer. Overall retail receipts climbed a seasonally adjusted 3 percent in January, snapping back from declines in November and December as consumers spent more on cars, clothing, and eating out. This comes after earlier reports showing that more than half a...