If the United States economy is so strong, then why can’t it handle 2% interest rates? That’s the question that needs to be asked every time President Donald Trump complains about the Federal Reserve raising rates, even though they are still below historical norms.
That said, on one hand, there have been several rate hikes since Trump’s inauguration. But, on the other, there has still been a huge increase in the money supply.
Here is the M2 money stock data over the last two-plus years:
Will rates come down? The market is betting that they will (SEE: As FOMC meets, Trump calls for cuts to interest rates).
Until then, you can still anticipate more money printing.
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