For many months now, I have been calling out June 2022 as the peak in the US’ current inflation cycle, and that significantly lower inflation lies ahead. In this article, I use 10 charts to explain why high inflation has already dissipated, and is now largely a rear-view mirror issue.
I will never understand what the Fed was thinking in 2020-21. Strict monetarism is out, but everybody thinks you get problems if you print too much money, and they printed twice as fast as ever before in modern history - even in the 70's! Just, WHY?
Yep, it's hard to fathom the virtually complete ignorance of changes in the money supply.
How the Fed could dismiss inflation at first given the underlying change in the money supply is beyond me.
But here they are now, repeating the same mistakes in reverse, with excessive tightening causing the first YoY declines in M2 for the first time in 60+ years.
I will never understand what the Fed was thinking in 2020-21. Strict monetarism is out, but everybody thinks you get problems if you print too much money, and they printed twice as fast as ever before in modern history - even in the 70's! Just, WHY?
Yep, it's hard to fathom the virtually complete ignorance of changes in the money supply.
How the Fed could dismiss inflation at first given the underlying change in the money supply is beyond me.
But here they are now, repeating the same mistakes in reverse, with excessive tightening causing the first YoY declines in M2 for the first time in 60+ years.