The Fed doesn’t print money, they print bonds. Money supply isn’t deflating like you think. M2 measurements exclude money market funds over <100k.
by AC U.S. MONEY MARKET FUND ASSETS HIT RECORD HIGHS DESPITE DEBT CEILING FEARS — FXHedge (@Fxhedgers) May 24, 2023 M2 decline is being over stated by the transfer of funds into money market funds. (as of today the 4-week …