Past Money Supply Inflation Thesis
Central banks caused the 2022 inflation crisis through massive money supply increases in 2020-2021, not through current economic conditions, making current rate hikes unnecessary
Too little corroboration in the last 3 days to call a trend (13 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"All cited concerns about inflation persisting well above the central bank's 2% target and the challenges policymakers would face if it becomes entrenched and cost pressures impact larger portions of the economy over time"
"Kashkari said the most recent information shows the current monetary policy is not "particularly restrictive." He argued "now is the time to start slowly moving up as we get more data in" and stated "I don't see evidence of monetary policy [being] marginally restrictive right now, and I think we have more work to do to get inflation back down.""
"inflation has been above target for more than five years – and the potential need for rate hikes to combat it"
"Inflation accelerated in Germany and in France. German inflation accelerated to the highest level in three months after temporary fuel-price relief expired and renewed fighting in the Middle East bolstered oil. Consumer prices rose an annual 2.8% in July."
"Three Fed officials who dissented expressed concern on Friday that without an immediate increase in short-term borrowing costs inflation will stay stuck above the Fed's 2% target, where it has been for more than five years."
""The longer that high inflation persists, the more challenging and costly it can be to bring it back down." and "If inflation remains elevated, in my view, a potential series of small policy moves would be better than waiting and eventually concluding that even bolder actions were necessary.""
""Inflation has been too high for too long," said one of the dissenters, president of the regional Cleveland Fed, Beth Hammack. "The longer that high inflation persists, the more challenging and costly it can be to bring it back down.""
"Logan said that current interest rates were not sufficiently restrictive on economic activity, and that barring an "unanticipated shock" inflation was likely to continue to trend above target."
""Logan said that current interest rates were not sufficiently restrictive on economic activity, and that barring an 'unanticipated shock' inflation was likely to continue to trend above target.""
"Chairman Kevin Warsh strongly emphasized his commitment to tackling inflation, stating 'There is no soft inflation target' and when asked about rate increases said 'If inflation continues to be elevated through the forecast period, interest rates could well be part of that solution.'"