When the dust clears from tomorrow’s Fed announcement, the crowd’s expecting that the slow but persistent pace of tapering will endure. While we’re waiting for Wednesday’s monetary statement, revised set of economic projections, and press conference, consider that the real (inflation-adjusted) year-over-year increase in the monetary base continues to decelerate. That’s not surprising at this point, but it’s a clear signal that monetary stimulus is still moving closer to normalization.
Continue reading →