/biz/ - Business & Finance

>>55499882
Money is created when a loan is taken out from a bank, and then destroyed when its payed back with interest. the Fed can also create money demand when it buys MBS and treasuries from the government.

The Fed has been selling some (very small amount) of its balance sheet but letting most of it run/ mature and only repurchase some of it.

The spike on this chart is from the SVB failure, many small banks had to reshuffle there balance sheets during March and stop giving out loans. Since the storm has past banks are now lending more money out, and now the M2 has risen some what. people and businesses are still spending money and need loans to function.
Businesses are rising prices by a lot because they can and workers are getting pay raises to meet the higher costs.
There has been a boom in home building and durable goods orders this month, witch mean more loans and higher M2

CPI and Core CPI are still at 4-5% and staying there for the time being while PPI is falling (2.27% to 1.09%) meaning all the increases have been from corporate price increases.