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8: You can’t fight the Fed

Onward, a Fundrise Production

CHAPTER

The Importance of Money Supply Increases and Declines

The Fed increased money supply in 2020 and 2021. But the economy didn't speed up again until 2021, 2022. And that's when we saw inflation. So it's super lagging, but it's clearly a huge driver of what's caused inflation to go up. The actual increase or decrease in the money supply actually does depend on how the financial institutions and the private sector react to the Fed's control of the monetary base.

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