Money Supply Surges to 3-Year High as Fed Quietly Eases Policy

With the market betting on a rate cut at this week’s FOMC meeting, many are hoping for another few months of easy monetary policy. Money supply growth data, however, shows how monetary policy is already too free, and the money supply is already growing too much.

The following article  was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

In recent months, Federal Reserve officials have repeatedly referred to monetary policy as restrictive. In September, Jerome Powell said policy was “clearly restrictive,” and in November, New York Fed President John Williams stated “I still view the current monetary policy level as moderately tight…” 

Well, it may be that current policy is “restrictive” compared to, say, the policies of Bernanke and Yellen. But recent data on the money supply suggests that the money supply in recent months is finding plenty of room to increase rapidly, in spite of what Fed officials say.