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Money supply spike means the Fed won’t cut at all in 2024 – Dohmen
The recent sharp rise in the M2 money supply means the Federal Reserve won’t be able to deliver on expected interest rate cuts this year, according to Bert Dohmen of Dohmen Capital Research. “We have been referring to the growth of M2 (money supply) as one of the factors that shows that the Fed has NOT been fighting inflation,” Dohmen wrote in a recent report. “Below we show the updated weekly chart of Money Supply M2, which continues to soar. It is the ‘not seasonally adjusted’ and therefore, does not include the usual fudge factor of ‘seasonal adjustment’ (chart via St. Louis Fed, with our ... (full story)