the visible hand

it is the theory which decides what can be observed – einstein

The Fed makes a quiet, and early, withdrawal

Posted by ecoshift on August 25, 2009

Irwin Kellner: The Fed makes a quiet, and early, withdrawal – MarketWatch

“PORT WASHINGTON, N.Y. (MarketWatch) — Guess what? The Federal Reserve has not only stopped depositing copious amounts of liquidity into the economy — it now appears to be in the process of making a sizable withdrawal.

A close look at quantitative measures of monetary policy reveals a sudden change in trend. After growing at unprecedented rates for well over a year, these aggregates stopped rising several months ago and have since declined, according to data provided by the Federal Reserve Bank of St. Louis.

For example, the monetary base — the raw material for the money supply — has fallen at a seasonally adjusted annual rate of 8% from early April of this year through mid-August, after soaring at a 187% pace during the previous eight months. ”

read full article…


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