US Bank Credit Growth Approaches Stall Speed – M2 Money Growth Reverses Course, But Still Negative

The economic approach of the Biden administration involves significant federal spending and monetary stimulus from the Federal Reserve. However, as with any stimulus, its effects can diminish over time. This is evident in the stagnation of US bank credit growth at a mere 0.7% year-over-year, while M2 Money growth sees a slight increase at -4%. These are factual figures. Some critics argue that the Federal Reserve, which operates independently, manipulates interest rates, while President Biden and Congress pursue expansive spending measures, resembling reckless behavior to drive economic growth.