| standahl - 11/6/2023 03:55
What is different this time that the rate hikes have not slowed the economy? In 2018 and 2019 a couple rate hikes slowed the economy enough to start increasing money supply by the fall of 2019.
The rate hikes have not slowed the economy *yet*. These things take time, and it's a process not an event. That's what's scary about the speed the Fed hiked rates; they have to give it time to sink in. It's like stopping your vehicle with a 3 second pause in the brakes. You could probably do a normal stop if you were careful about it and get it close. But when a deer runs out in front of you and you stand up on them, you just don't know how that might go until it's over. Hopefully it works out, and it might, but the delay is a huge wild card to stopping quickly. |
M2 money supply
