- The private sector balance increased by over $196+ billion in February 2022 due to a federal government deficit adding funds to the private sector.
- Credit creation from commercial banks was weaker at $52B+.
- The seasonal pattern is down until early-to-mid March as the market negotiates a series of liquidity sinkholes from federal tax collection. Made worse by the Russo-Ukraine war sentiment.
- Fed rate increases and tapering on the table. Fiscal repression is now the trend and is likely to spread worldwide but might be wound back due to the Russo-Ukraine war.
- G5 fiscal flows are about to turn an inflection point back upwards.
For further details see:
The White House, Fed, Inflation, And Flow Of Funds For March 2022