I would have liked to attach a picture of mine, but it doesn't look like I can. When the Fed was tightening by letting their assets mature from roughly 2017-2018, the monetary base was being lowered substantially. The overnight rate was also coming up. Nonetheless, the M2 money supply was still increasing steadily. Why is this?
When the Fed begins their QT this time around, the pace of balance sheet reduction is said to be much more rapid. What are we to expect in terms of the M2 money supply?
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