As a result, real incomes and hence consumer spending have grown more sluggishly in the euro zone.

ECONOMIST: The halo effect | The

So long as low yields continue to support America's housing bubble and hence strong consumer spending, they will block any significant reduction in the country's current-account deficit.

ECONOMIST: World economy

Yet far more important than the direct impact on production will be the impact on business and (especially) consumer confidence, and hence on spending.

ECONOMIST: World economy

Hence, consumer spending and economic growth are highly correlated and when Americans are uncertain about their household finances and start to rein in their own spending, the U.S. economy, in turn, generally does not grow as much as the following chart helps to illustrate.

FORBES: Fed Is Still The Market's Friend, Thanks To A Weak Recovery