Core personal consumption growth in July was just 1.2% – the weakest since March 2011. Whatever The Fed is doing to grow the middle class (yes, yes, we know: that’s not in the mandate – only the “wealth effect” is) is not workingm and as the following chart suggests hasn’t worked for the past 35 years.
Chart: Blooomberg
Lower rates is not helping, and higher rates didn’t work in the 90s: maybe The Fed is all talk and CONfidence after all.
