Sentiment shifts caused by the trade war have dominated a key fundamental - namely, the stagnation of profit growth. Companies are not passing tariff costs to consumers. Thanks to the internet era of price transparency, consumers are easily and aggressively comparing costs. Profits margins are squeezed because corporations have been unable to raise prices over fear they will lose market share. Blu Putnam, Chief Economist at CME Group, explains why consumer spending is a key driver of the US economy.

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