{"id":9878,"date":"2023-09-28T16:11:36","date_gmt":"2023-09-28T20:11:36","guid":{"rendered":"http:\/\/centerforfinancialstability.org\/wp\/?p=9878"},"modified":"2023-09-29T16:12:20","modified_gmt":"2023-09-29T20:12:20","slug":"extinguished-consumer-surpluses-cfs-money-supply-measures","status":"publish","type":"post","link":"https:\/\/centerforfinancialstability.org\/wp\/2023\/09\/28\/extinguished-consumer-surpluses-cfs-money-supply-measures\/","title":{"rendered":"Extinguished Consumer Surpluses: CFS money supply measures"},"content":{"rendered":"\n<p>Wall Street Journal reporter, Rachel Louise Ensign, wrote a terrific piece on the consumer yesterday &#8211; &#8220;Americans Finally Start to Feel the Sting from the Fed&#8217;s Rate Hikes.&#8221;&nbsp; The story highlights how:<br><br>&#8211; &#8220;Consumers\u2026 are discovering that, because of the Federal Reserve&#8217;s rate increases, their money gets them a lot less than it would have a few years ago.&#8221;<br><br>&#8211; &#8220;Consumers are carrying much higher [credit card] balances than they were two years ago.&#8221;<br><br>Interestingly, CFS Divisia M2 reveals another core issue regarding the sting from higher rates and tighter policy.&nbsp; Swollen consumer surpluses in the aftermath of the essential post-Covid fiscal and monetary response are now extinguished.<br><br>To view &#8220;Extinguished Consumer Saving Balances &#8211; CFS Divisia M2, actual and predicted<br><a href=\"http:\/\/www.CenterforFinancialStability.org\/research\/Extinguished_Balances_20230927.pdf\" rel=\"noreferrer noopener\" target=\"_blank\">www.CenterforFinancialStability.org\/research\/Extinguished_Balances_20230927.pdf<\/a><br><br>Note: The CFS Divisia M2 measure of consumer liquidity includes currency, demand deposits, other liquid deposits, and retail money market funds.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street Journal reporter, Rachel Louise Ensign, wrote a terrific piece on the consumer yesterday &#8211; &#8220;Americans Finally Start to Feel the Sting from the Fed&#8217;s Rate Hikes.&#8221;&nbsp; The story highlights how: &#8211; &#8220;Consumers\u2026 are discovering that, because of the &hellip; <a href=\"https:\/\/centerforfinancialstability.org\/wp\/2023\/09\/28\/extinguished-consumer-surpluses-cfs-money-supply-measures\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,5],"tags":[],"class_list":["post-9878","post","type-post","status-publish","format-standard","hentry","category-central-banking","category-money"],"_links":{"self":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts\/9878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/comments?post=9878"}],"version-history":[{"count":1,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts\/9878\/revisions"}],"predecessor-version":[{"id":9879,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts\/9878\/revisions\/9879"}],"wp:attachment":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/media?parent=9878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/categories?post=9878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/tags?post=9878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}