MacroVoices #430 Jim Bianco: Rate Hike On Deck
Macro Voices
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The Economy and Consumer Spending
The strength of the economy determining the possibility of a rate hike depends on the definition used. Top-line statistics like GDP and retail sales indicate strength, driven largely by government spending. However, the income distribution plays a crucial role. The top 50% contribute to 70% of retail sales, and the top 70% contribute to 85%. Wealthier individuals, especially the top 10% with capital gains and higher interest income, will likely continue spending.
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