- The private sector balance decreased by over -$102+ billion in January 2022, due to a federal government surplus withdrawing financial assets from the private sector.
- Credit creation from commercial banks was weaker at $87B+.
- The seasonal pattern is down until early-to-mid March as the market negotiates a series of liquidity sinkholes from federal tax collection.
- Fed rate increases and tapering on the table. Fiscal repression is now the trend and is likely to spread worldwide.
- 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 February 2022