M2 Velocity
M2 consists of small-denomination time deposits >100K - less IRA and Keogh balances at Institutions.
Balances in retail MMFs - less IRA and Keogh balances at MMFs.
M2: Savings Deposits, Small-Denomination Time Deposits, Retail Money Market Funds, + M1.
____________________________________
In Sum, Consumer Economic activity and Balances.
____________________________________
The Velocity of money is calculated as the ratio of nominal gross domestic product (GDP)
to the money supply (V=PQ/M), which is used to measure Economic strength and/or
Consumers' willingness and/or ABILITY to spend money or Consume.
____________________________________
The Federal Reserve is well behind the Inflation Curve.
Initially, 2024 was the year for Fed Funds rate increases.
It has since moved from 2024 to 2023 and now there is a
73% Probability of the Federal Reserve increasing Fed Funds
twice in 2022.
8 Months of tapering at the indicated removal of 15Billion
is not going to occur.
The Federal Reserve will not be able to delay, they will increase
the reduction to Bond/MBS Purchases in order to begin a Rate Cycle
sooner than Equity Complex Participants have assumed.
Thye have not recognized the underlying ISSUES, should Money
Velocity begin to increase... they will be forced to reduce QE
faster and further than the majority are anticipating.
4 Fed Members prefer to conclude the Taper at the end of March 2022.
____________________________________
Peak Earnings are now behind us, Q2 2021 was the Zenith of this
Credit Cycle.
Balances in retail MMFs - less IRA and Keogh balances at MMFs.
M2: Savings Deposits, Small-Denomination Time Deposits, Retail Money Market Funds, + M1.
____________________________________
In Sum, Consumer Economic activity and Balances.
____________________________________
The Velocity of money is calculated as the ratio of nominal gross domestic product (GDP)
to the money supply (V=PQ/M), which is used to measure Economic strength and/or
Consumers' willingness and/or ABILITY to spend money or Consume.
____________________________________
The Federal Reserve is well behind the Inflation Curve.
Initially, 2024 was the year for Fed Funds rate increases.
It has since moved from 2024 to 2023 and now there is a
73% Probability of the Federal Reserve increasing Fed Funds
twice in 2022.
8 Months of tapering at the indicated removal of 15Billion
is not going to occur.
The Federal Reserve will not be able to delay, they will increase
the reduction to Bond/MBS Purchases in order to begin a Rate Cycle
sooner than Equity Complex Participants have assumed.
Thye have not recognized the underlying ISSUES, should Money
Velocity begin to increase... they will be forced to reduce QE
faster and further than the majority are anticipating.
4 Fed Members prefer to conclude the Taper at the end of March 2022.
____________________________________
Peak Earnings are now behind us, Q2 2021 was the Zenith of this
Credit Cycle.
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