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Analysts at Citi group offer their take on the US economy, in the wake of the Fed’s tightening cycle and Trump’s fiscal stimulus.

Key Quotes:

“Expect any pause or turn in the rate cycle to have a quick effect.

Those sectors of the economy sensitive to rates (citing housing, autos) showing weak underying trend.

Surge in fiscal stimulus a sugar high, awkwardly impacting US economy.

Large budget deficit, rundown of balance sheet, foreigners less keen on the US debt.

Markets not pricing much ECB tightening.”