M1 and M2 are decelrating, rising 4.0 and 4.5% at seasonally adjusted annual rates, down from 18.1% and 9.8% over the past twelve months. But they are still rising, and at a reasonable pace.  The other part of the puzzle is that velocity, the speed at which money circulates through the economy, seems to have stabilized.  This sets the stage for M3 to rise--the key indicator that monetary policy will at long last help the economy to grow!!
Are there other reasons to believe that the Fed will finally encourage economic growth? Stay tuned for more!

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