Cleveland Fed President Pianalto conforms closely with her peers, seeing a slow recovery beginning late this year but she makes the interesting observation that US consumer spending will not return to the 70% of GDP level it was prior to the crisis. She says Americans will save more ahead. That’s bad news for China unless they find new markets to take up the slack. Latvia maybe?
EUR/USD is making a run for stops below 1.4100 as we write.
