Business

Money Supply Shrinks for the First Time. What It Says About Inflation and the Economy.

By Georgina Taylor
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Georgina Taylor

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The Federal Reserve faces a momentous decision in the coming weeks. Markets expect the central bank to increase rates by a quarter of a percentage point, marking a significant slowdown in its history-making pace of hikes.

The dial-back, if implemented, will be for good reason—the rate hikes look like they are starting to work. The annual pace of inflation in December cooled for six straight months and looks set to continue to slow.

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