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re: CPI comes in hotter than expected, S&P 500 down 1%

Posted on 2/14/24 at 7:11 pm to
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51823 posts
Posted on 2/14/24 at 7:11 pm to
quote:

indication that the increase is base money in the form of bank reserves which never left the Feds balance sheet.


I didn't think reserves were counted in M1, I thought they were M0?
Posted by slackster
Houston
Member since Mar 2009
85138 posts
Posted on 2/14/24 at 7:25 pm to
They’re in both.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11196 posts
Posted on 2/14/24 at 8:27 pm to
At some point I’m sure that was right but go look how many reserves were in the system prior to QE1. They’re not needed for the commercial banks to operate. When I get a minute I can go find the Fed minutes where they basically admit they can’t measure the money supply.
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