First double-digit contraction in the US money supply since the early-1930s. By Steven Saville.

The year-over-year growth rate of US True Money Supply (TMS) is now around negative 10%. … The last time there was a double-digit annual percentage contraction in the US money supply was the early-1930s.

In 2020 the Fed flooded the US economy and financial markets with dollars in an effort to make it seem as if the government could impose major restrictions on economic activity for several months without causing widespread hardship. Then, throughout 2021 the Fed acted as if the monetary deluge of 2020 would have only minor inflationary effects, mainly because major effects were yet to appear in backward-looking statistics such as the CPI. During the first half of 2022 the Fed finally realised that its prior actions had caused a major inflation problem, and in response it embarked on an aggressive monetary tightening program.

Trying to withdraw the extra money it manufactured in 2020-21, the US Fed will very likely drive the US into recession:

At some point during the second half of this year the Fed will realise that its monetary tightening has gone too far, and at around the same time it will start coming under political pressure to create the illusion of prosperity in the lead-up to the November-2024 Presidential Election. It then undoubtedly will begin to lean in the opposite direction, again with its eyes firmly fixed on the rear-view mirror (backward-looking data).

This will set the scene for the next great inflation wave.

Let the market set interest rates, not bureaucrats:

Giving an individual or a committee the power to manipulate the money supply and interest rates would be problematic even if those doing the manipulating were competent.