Inflation is expected to remain sticky and higher than what the Federal Reserve expects. According to the Federal Reserve Bank of New York’s Survey of Consumer Expectations, the one-year-ahead inflation is expected to be at 4.4 percent, down slightly from the 4.7 percent print in the March report. The three- and five-year-ahead expectations jumped to […]
Federal Reserve
Federal Reserve money supply crashes 4%, fourth straight monthly drop
The Federal Reserve money supply is crashing like President Joe Biden’s approval ratings. In March, the M2 money supply contracted by 4.05 percent, down from 2.29 percent in February. This is the fastest decline in the money supply since the Great Depression when it cratered by about 25 percent. Here is a look at the […]
Federal Reserve balance sheet shrinks below $8.6 trillion for first time since banking turmoil
The Federal Reserve’s balance sheet fell below $8.6 trillion for the first time since the beginning of the banking turmoil caused by the failures of Silicon Valley Bank and Signature Bank. The balance sheet came in at $8.593 trillion for the week of April 19, down from $8.614 trillion in the previous week. Here is […]
Federal Reserve expects recession later this year after banking crisis: Minutes
The Federal Reserve staff expect a recession later this year following the banking crisis, minutes from the March Federal Open Market Committee (FOMC) policy meeting show. Here is the key part of the minutes (emphasis ours): “For some time, the forecast for the U.S. economy prepared by the staff had featured subdued real GDP growth […]
Federal Reserve money supply contracts for third straight month, falls 2.35% in February
The Federal Reserve’s money supply keeps contracting. Last month, the U.S. central bank’s M2 money supply contracted 2.35 percent, the third consecutive monthly decline. Here is the chart: For the first time it started sharing this data in the 1960s, the Fed witnessed its first contraction ever in December. Of course, this is a lagging […]