US consumer spending, inflation and the labor market have all cooled in recent weeks, adding to evidence that the economy is slowing—seemingly matching the Federal Reserve’s preferred glide path toward a soft landing. Inflation-adjusted personal spending rose only 0.2% last month after a downwardly revised 0.3% advance in September. Separate data Thursday showed recurring applications for unemployment benefits rose to their highest level in about two years. The question now is when to pull up—and whether the central bank does it too early or too late. “The Fed is on hold for now but their pivot to rate cuts is getting closer,” Bill Adams, chief economist at Comerica Bank, said in a note. “Inflation is clearly slowing, and the job market is softening faster than expected.”
Multimanager funds like Ken Griffin’s Citadel dominate the hedge fund industry and have grown to oversee more than $1 trillion, which includes a healthy dose of leverage. But the explosive rise has led these industry giants to pile into many of the same trades. That’s built unease among regulators, investors and traders. While Griffin has vocally opposed any notion that his firm and its rivals pose systemic risks or (god forbid) need more regulation, even he acknowledges that crowded trades could lead to widespread losses if everyone bails at once.
