Recent Updates
- Korea: Import & Export Price Indexes (SEP)
- US: Monthly Treasury Statement (Sep), Mfg & Trade Inventories & Sales (Aug), Adv Retail Sales (Sep)
- US: Empire State Mfg Survey (Oct)
- Japan: NCI Economic Activity Index (Oct)
- Turkey: LFS (Jul), Public Finance (Sep); Jordan: CPI (Sep); South Africa: Fuel Sales Volume (Q2); Israel: CPI (Sep)
- Bulgaria: CPI, HICP (Sep); Estonia: Government Finance (Aug)
- Norway: External Trade (Sep); Finland: BOP, IIP (Aug)
- more updates...
Economy in Brief
Empire State Manufacturing Index Increases; Prices Decline
The Empire State Manufacturing Index of General Business Conditions rose to 21.1 in October...
U.S. Business Inventory Accumulation Eases
Total business inventories increased 0.5% (4.2% y/y) during August...
Finland’s Inflation Stays Low -- Mostly
Finland is experiencing three distinct forces on the inflation front...
U.S. Home Affordability Improves M/M
The NAR Composite Index of Home Affordability declined 8.3% y/y during August to 141.2...
U.S. Import Prices Rise With Higher Fuel Costs; Export Prices Steady
Import prices increased 0.5% (3.5% y/y) during September...
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% |
