The recovery of the US economy from the COVID shutdown is several years old now, but how much longer will it last? Data on activity from various sectors of the economy give us clues regarding the short term prospects for prosperity. The Federal Reserve regulates interest rates and the money supply. Fed officials implemented a historic increase in the money supply in 2020 (see the top-left graph, below). The Fed cut the money supply in the past two years. Reductions in the money supply usually lead to recessions (marked by vertical gray bars in the graphs below).
8 Signs that the Economy is Slowing
8 Signs that the Economy is Slowing
8 Signs that the Economy is Slowing
The recovery of the US economy from the COVID shutdown is several years old now, but how much longer will it last? Data on activity from various sectors of the economy give us clues regarding the short term prospects for prosperity. The Federal Reserve regulates interest rates and the money supply. Fed officials implemented a historic increase in the money supply in 2020 (see the top-left graph, below). The Fed cut the money supply in the past two years. Reductions in the money supply usually lead to recessions (marked by vertical gray bars in the graphs below).