How the Fed Will Trigger the Next Crash

Consumers, whose spending makes up 70% of U.S. GDP, aren’t in the terrific shape everyone thinks they are. As rates rise and their debt gets more expensive, spending will slow and could trigger the next crash.

The founder of economic research firm Macromavens can be relied on to puncture market bromides—like the one, say, that regulations will stop another financial crisis. The next crisis, says Stephanie Pomboy, will come from the Federal Reserve itself, whose march to tightening will stress tapped-out consumers and overstretched corporations.

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