The new money supply data from April 28 indicates a drastic change compared to the developments throughout the month.
The annual growth rate has spiked up to 3.95 %, mostly due to an unusually large increase in government note balances at depository institutions, which accounted for 49% ($33 billion) of the additional supply, followed by checking account deposits, making up about 33% ($22 billion).
This is an unusually abrupt change. If this momentum is sustained throughout the next months it is conceivable that the recent correction at the markets has indeed come to an end and the stage might be set for another inflation bubble.
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