Recent Updates
- US: Consumer Confidence (Nov), FHFA HPI, Case-Shiller Home Price Indexes (Sep)
- Belgium: Business Surveys (Nov)
- Bosnia: CPI (Oct)
- Mexico: CPI Semi Monthly (Nov)
- more updates...
Economy in Brief
U.S. FHFA House Price Index Posts Another Record Increase
The FHFA Price Index jumped 1.7% during September...
U.S. Energy Prices Mixed
The price for a barrel of West Texas Intermediate crude oil increased to an average of $41.62 (-27.0% y/y)...
IFO Outlook Loses Momentum
The IFO climate index rose to a net value of 1.2 in November...
Chicago Fed National Activity Index Improves During October
The Federal Reserve Bank of Chicago's National Activity Index rebounded to 0.83 during October...
PMIs Bend lower in EMU on Covid-19 Actions
Economies in Europe, the U.K., and even Japan are being beaten back by the Covid-19 virus...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller June 27, 2005
Liquidity growth in the US has slowed markedly this year versus the charged growth rates during the prior three years. Growth during the last three months in the adjusted monetary base fell to 1.2% versus 5.3% growth last year and 8.6% growth during 2002.
Contributing to this slowdown, if not causing it, has been the increase in the targeted interest rate for Fed funds to 3.0% from 1.0%.
Growth in MZM also has slowed to 0.8% during the last three months versus 3.9% during 2004 and 13.0% growth during 2002. The pickup in the most recent MZM growth rate from below zero may indicate continued life for consumer spending.
A Neutral Federal Funds Rate? from the Federal Reserve Bank of St. Louis can be found here.
| Money Supply | 6/22/05 (13 Week %, AR) | Y/Y | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|
| Adjusted Monetary Base | 1.2% | 4.4% | 5.3% | 6.3% | 8.6% |
| MZM | 0.8% | 0.5% | 3.9% | 7.4% | 13.0% |
