Terminal (Money) Velocity? M2 Money Velocity Crashes To Near All-time Low As Fed Continues To Print Money At 9% YoY Clip (Mortgage Rates Keep Rising)

by confoundedinterest17

M2 Cash Velocity (GDP/M2 Cash) peaked in Q3 1997, however after a number of bouts of Fed cash printing, M2 Cash Velocity is close to the all-time low at 1.1216 In Q1 2022. And M2 Cash inventory remains to be rising at a torrid tempo of 9.9% YoY. However the large overreaction of The Federal Reserve in response to the Covid outbreak has led to close zero cash velocity.

Now with The Federal Reserve contemplating eradicating the financial stimulus, what’s going to occur to US GDP left to outlive by itself?

An instance of how The Fed’s anticipated tightening of financial coverage could be seen within the meteoric rise in mortgage charges.

So, the US has hit terminal cash velocity. I want The Fed a lot of luck going ahead.

Is Charlie Sheen the Chairman of The Federal Reserve Board of Governors?? That should be Lael Brainard falling out of the sky with Charlie Sheen (aka, Jerome Powell).