Americans are about to put the brakes on spending, and that's got Wall Street analysts on alert. Here's why, and what it means for stocks.

• Americans are beginning to tighten their belts in the face of inflation and rising interest rates.
• The slowdown in spending might come quicker than the Fed expects, and it could signal a recession.
• Here's why spending is likely to slow down, and why it could mean more turmoil for markets.

Americans look ready to start pulling back on spending, as the effects of inflation and rising interest rates finally begin to bite.

Retailers and others believe that consumer expenditure is likely to fall, after kicking off the first weeks of 2023 on the rise.