Pimco's Fels Says U.S. Economy Has Entered 'Window of Weakness'

The video discusses the current economic slowdown, highlighting the impact on consumer spending due to factors like real wage pressure and inflation. It examines the retail sector's challenges, particularly Home Depot, and anticipates insights from Lowe's. Despite a window of weakness, a moderate recovery is expected next year due to Fed rate cuts and reduced global uncertainties, such as a potential US-China trade deal and a less likely hard Brexit. However, recession risks remain elevated, with the economy at stall speed, raising doubts about recovery.

What is one reason for the slowdown in consumer spending mentioned in the video?

• Increased government spending

• Rising real wages

• Decelerating nominal wage growth

• Booming manufacturing sector

What does the term 'window of weakness' refer to in the context of the economy?

• A period of rapid economic growth

• A phase where economic growth slows significantly

• A period of stable economic conditions

• A time when consumer spending increases

Which retailer's performance is mentioned as being affected by strategic factors?

• Home Depot

• Walmart

• Amazon

• Target

What is one factor that might contribute to a moderate economic recovery next year?

• Increased inflation rates

• The Fed raising interest rates

• Eased financial conditions

• A hard Brexit

Despite some positive signs, what risk remains elevated according to the video?

• Deflation risk

• Recession risk

• Currency devaluation risk

• Trade surplus risk