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re: US CPI data release today

Posted on 2/14/23 at 2:50 pm to
Posted by buckeye_vol
Member since Jul 2014
35243 posts
Posted on 2/14/23 at 2:50 pm to
quote:

If they REALLY cared about getting inflation down then they would contract the money supply.
Well M2 peaked at $21.7397 trillion in March and was down 2.5% in December to $21.2074 trillion, which appears to be the largest contraction since the data series began in 1959, at least in absolute terms but maybe relative as well.

Fred Data on M2
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51877 posts
Posted on 2/14/23 at 3:03 pm to
quote:

Well M2 peaked at $21.7397 trillion in March and was down 2.5% in December to $21.2074 trillion, which appears to be the largest contraction since the data series began in 1959


It's taken almost a year to drop 2.5% but it needs to drop at least another 15% on top of that to be in line with where it would have been without COVID. It will be interesting to see how much that drop rate increases with higher hanging around for a while.
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