Evidence for: The Federal Reserve's interest rate hikes reduced inflation from 9.1% in June 2022 to 3.4% by December 2023.

0 · asserted by ◎ stannebraska (329) · 7 months ago

The vote is on the link: is “M2 money supply growth slowed from 12.9% in February 2022 to -3.7% by October 2…” good evidence for the claim?

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the evidence

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.

◎ stannebraska (329) · 7 months ago
the 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.

◎ stannebraska (329) · 7 months ago · central-banking · inflation · interest-rates · macroeconomics · monetary-policy

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