Evidence Relationship: Supports
Vote on whether "M2 money supply growth slowed from 12.9% in February 2022 to -3.7% by October 2023." is good evidence that supports the claim "The Federal Reserve's interest rate hikes reduced inflation from 9.1% in June 2022 to 3.4% by December 2023."
Sources for this evidence:
Evidence Claim
M2 money supply growth slowed from 12.9% in February 2022 to -3.7% by October 2023.
Restrictive Fed policy reduced money supply growth and even caused contraction, limiting the funds available for spending and price increases.
Main Claim
The Federal Reserve's interest rate hikes reduced inflation from 9.1% in June 2022 to 3.4% by December 2023.
This claim attributes the decline in U.S. inflation rates over an 18-month period directly to the Federal Reserve's monetary policy of raising interest rates. The Fed increased rates from 0.25% to 5.5% during 2022-2023, and inflation measured by CPI fell from its peak of 9.1% to 3.4% in this timeframe.
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