Tag: money supply

ANALYSIS: The Fed Is Raising Rates, but What About the $8.3 Trillion Balance Sheet?

News Analysis All financial eyes will be on next week’s policy meeting of the Federal Open Market Committee (FOMC). The futures market is penciling in a quarter-point increase to the benchmark federal funds rate. But while all the focus among economists, investors, and market analysts is on interest rates, what about the Federal Reserve’s massive…


The Fed Is Raising Rates, but What About the $8.3 Trillion Balance Sheet?

All financial eyes will be on next week’s policy meeting of the Federal Open Market Committee (FOMC). The futures market is penciling in a quarter-point increase to the benchmark federal funds rate. But while all the focus among economists, investors, and market analysts is on interest rates, what about the Federal Reserve’s massive balance sheet?…


Money-Supply Slump Spells Private-Sector Recession

Commentary Allow me to explain why we have not seen a recession yet, despite the collapse in base money supply. We are witnessing the stealth nationalization of the economy. What does this mean? The entire burden of the monetary collapse and rate hikes is falling on the shoulders of families and small businesses, while large…


Money Supply Shrinks at Fastest Pace Since Great Depression

The Federal Reserve recorded its fourth consecutive monthly contraction in the money supply as the central bank continued to remove money from the financial system. In March, the M2—a measurement of money in circulation that includes cash, checking deposits, and a wide range of other deposits—declined 4.05 percent, down from negative 2.3 percent in February….


Is This Finally Some Tolerable Inflation News?

Commentary For reasons I don’t get, the whole of financial markets is obsessed with the Consumer Price Index (CPI) but the Producer Price Index (PPI) is largely ignored. It hardly makes the headlines. That makes no sense because everything we consume (except maybe bugs) has to be produced. The consumer experience of inflation is downstream…


Recession Risk Grows After Money Supply Shrinks at Fastest Pace Since Great Depression

The U.S. money supply contracted for the third consecutive month, and is declining at the fastest pace since the Great Depression, new Federal Reserve data show. In February, the M2 money supply—a benchmark for how much cash, bills, bank deposits, coins, and money market funds are circulating throughout the national economy—tumbled 2.24 percent from the…


China’s Quantitative Easing Will Help Little in Economic Recovery: Expert

Several Chinese state media recently said that the central bank’s extensive liquidity injection this year would inevitably result in significant inflation and a surge in home prices. They encourage people to consider buying a house, as real estate ownership can serve as an effective hedge against inflation. These outlets also stated that the property market…


China Added to Its Money Supply in 2022

News Analysis China has reportedly added trillions of yuan to the money supply in 2022, the most in its history and equivalent to the combined amount from the United States, Japan, and the European Union. However, the move may have no way to boost the Chinese economy, given a sluggish trend in GDP and a…


Inflation Seems to Be Re-Accelerating

Commentary It was a bad week for those promising that our inflation problems are going away. All data from January suggest exactly the opposite. The headlines for consumer prices were all about “cooling,” “firming,” “easing,” “moderating,” and another or so dozen weasel words to disguise the reality that January’s numbers had gained steam over December…


Inflation Is ‘Increasingly’ Homegrown, Says Bank of Canada Governor

The Liberal government has been calling inflation a “global phenomenon,” but Canada’s central bank governor says that it’s “increasingly” a Canadian affair. “Some of this inflation reflects global developments that we don’t control but inflation in Canada increasingly reflects what’s happening in Canada,” Bank of Canada Governor Tiff Macklem told the Halifax Chamber of Commerce…