The Fed has conquered inflation. It's time to start easing. The economy looks OK, no looming recession. {chart}Chart #1 is arguably the most important chart that the market and the Fed have almost completely ignored for decades. Sure, everyone talks about the money supply (the best measure of which is M2), but no one talks about money demand. And as all students of economics should have learned, prices are set at the margin by the intersection of supply and demand. As Milton Friedman taught us, inflation happens when the supply of money exceeds the demand for it; so when there is an excess of money supply relative to ... (full story)