Global| Aug 22 2014U.S. Monetary Policy Is Less Accommodative
by:Tom Moeller
|in:Economy in Brief
Summary
The Federal Reserve has been reducing the growth in monetary liquidity. Three separate indicators suggest that the effort has been pervasive. 1) Money growth has been stable during the last several years and is down from its peak [...]
The Federal Reserve has been reducing the growth in monetary liquidity. Three separate indicators suggest that the effort has been pervasive.
1) Money growth has been stable during the last several years and is down from its peak early in 2012.
2) Slower growth in non-borrowed reserves needed by the banking system also is in evidence.
3) The yield curve between 10-year Treasury notes and the Fed funds rate has narrowed sharply.
Over the short-term, the current stance of monetary policy still suggests, to many analysts, that positive economic growth will be sustained. Moreover, if money growth is held in check over several years it may imply that the recent pickup in inflation will be limited.
Labor Market Dynamics and Monetary Policy is the title of today's speech by Fed Chair Janet L. Yellen and it can be found here.
| 3-Mth | 6-Mth | 12-Mth | 24-Mth | 36-Mth | |
|---|---|---|---|---|---|
| Money Supply Growth (M2, AR) | 5.1 | 5.6 | 6.4 | 6.4 | 6.5 |
| Non-Borrowed Reserve Growth (AR) | 5.4 | 7.0 | 27.0 | 34.2 | 20.0 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
