Slippin’ Into Darkness! Dallas Fed Manufacturing Index Plunges To 1.1 As M2 Money “Slows” To 11% YoY (Will The Fed Reinstate Its “Low Rider” Interest Rate Policies?)

Confounded Interest ^ | 04/25/2022 | Anthony B. Sanders

[Browns Ultra Fan]

Slippin’ into darkness!

M2 Money stock YoY skyrocketed during the Covid mini-recession, peaking at 21% during February of 2021. The Dallas Fed manufacturing outlook grew to 38.1 in March 2021.

However, as M2 Money growth has slowed 11%, the Dallas Fed manufacturing outlook has plunged to near zero.

So, with the economy faltering (and REAL wage growth in negative territory), will The Fed reinstate its “Low Rider” interest rate policies?

The US Treasury 10Y yield is down -12.5 basis points (never a good sign as investors buy Treasuries in a flight to safety).

Crude oil is down below $100 again and is down -5.61% today on … problems everywhere. ALL metals are down.

Cryptos are getting clobbered today as well.

Between Biden’s “Going green!” policies and The Fed’s allegedly trying to fight inflation, markets are getting trashed.

[Browns Ultra Fan]

Biden is the worst President is history, particularly with a war in Ukraine and China going into lockdown.

[Leaning Right]

I’d still rate Bush II as worse than Biden, given Bush’s bloody and expensive failures in Afghanistan and Iraq. We will be paying for his foolishness for generations.

But Biden has more than two years to go. That’s more than enough time to screw things up worse than Bush did.

[Dave Wright]

I guarantee Chairman Powell doesn’t want to be Biden’s scapegoat for triggering a recession in an election year. Supply chain induced inflation is not the same as consumer demand driven inflation as shown by the historic low M2 velocity rate. The markets are pricing in 4 or 5 more Fed rate hikes which I believe is a mistake.

[mn-bush-man]

I also believe 4-5 more rate hikes are a mistake. The problem is the fed is left with two choices... both of which are mistakes. Hike... crash the economy. Don’t hike... inflation runs away even faster. Ultimately what I think is going to happen is they’ll hike and crash the economy... and inflation will still run rampant because of other factors.

[Starboard]

I agree with you. Powell is simply not going to drive rates up to the point that they hurt the Democrats in November. He will back off.

[Georgia Girl 2]

I have said that I look for a couple of rate hikes then chaos breaks out and they have to start lowering again like in 2016.

[pas]

Just what is Putin doing today to cause all this? /s

[Codeflier]

That site seems to love inflation and free money.