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M2 update: US inflation still headed to zero
On the eve of what is likely to be the end of this cycle of Fed tightening (even if the Fed hikes rates 25 bps tomorrow, they will almost surely convey the impression that no more hikes are envisioned), this blog continues its coverage of the all-important money supply figures. The June M2 number was released today and it was unremarkable. Year over year M2 growth is running at about a -4% rate, while M2 has been relatively flat over the past three months. This is consistent with further declines in inflation over the next 6-9 months. It continues to amaze me that only a handful of Fed watchers pay any attention to ... (full story)