Eccles Building accelerates the money supply ahead of rate cuts.
Is Federal Reserve monetary policy restrictive? Chair Jerome Powell and many of his colleagues have insisted that conditions are tight, meaning that policymakers are decelerating money supply growth to slow down the economy. A tidal wave of data suggests that if the desired objective is to eradicate inflation by slowing the economic landscape, then either more interest-rate hikes or higher-for-longer rates might be necessary to erect a mission-accomplished banner on the USS Marriner Eccles.
Federal Reserve Money Supply Data
For the fourth consecutive month, the Federal Reserve’s M2 money supply – a measurement of the nation’s money supply – increased in June, ballooning by $73 billion to $21.03 trillion. This is the first time that the country’s money stock…
