ACTV - Federal Reserve Watch: Plenty Of Money Still Around
2024-05-20 01:23:30 ET
Summary
- The Federal Reserve has been conducting quantitative tightening for over two years, reducing its securities portfolio by over $1.6 trillion.
- The M2 money stock has increased at a compound annual rate of 6.9% over the past four years, indicating excessive monetary growth.
- Despite the reduction in the size of the Federal Reserve's securities portfolio, there is still plenty of money circulating around in the banking system.
The Federal Reserve has been conducting a round of quantitative tightening for over two years now.
During this time, since March 16, 2022, the securities portfolio of the Federal Reserve has been reduced by over $1.6 trillion. The number up through Wednesday, May 15, 2024, is $1,628.1 billion....
Federal Reserve Watch: Plenty Of Money Still Around