UBS On-Air: Paul Donovan Daily Audio Are rate hikes helping?

The US Federal Reserve’s Beige Book was consistent with a slowdown. Growth was described as weak, and pricing pressures weakening. Somewhat concerning was a description of slowing wage growth - real wages are already catastrophically negative, and slowing nominal wage growth makes reducing inflation more important. Consumer credit data today should show consumers willing to borrow to stabilize spending, but also hint at the extent of the gulf between real income and consumer spending.