Money supply is growing again in the U.S. ... hmmm! I had not updated this one in a while, but since I am concerned about inflation getting a second act I thought it was a good time to revisit. Money supply is a leading indicator, and up until the late 1980s was actually part of the Conference Board's official LEI until it was replaced with the yield curve. It's not always consistent as a leading indicator, but it is associated with inflation and deservedly so. It's not exactly at 2021 levels, but the economy is running tighter than it was back then and it looks set to accelerate further from here. One to keep an eye on. Happy Thursday. FT
Watch the money supply