Are US Policymakers at Risk of Over-egging the Pudding?

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Are US Policymakers at Risk of Over-egging the Pudding?

 

Weekly balance sheet data from the World’s major Central Banks show aggregate liquidity growth picking up to a near-23% clip (3m ann.). Data for the G4 (exc. China) show growth slightly higher at 24%. The Fed has driven the recent upturn, with the monetary base now growing at 41% (3m ann.): at the top of the range established since October 2020. Following on from recent Fed statements affirming its commitment to full employment, the US Government has this week added another huge dollop of targeted fiscal stimulus. Are US policymakers in danger of over[1]egging the pudding?

 

 

 

See our latest published research, Weekly Global Liquidity Update 12 March  2021

 

 

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