Fed Rate Hikes Don't Drive Monetary Policy

Will the Fed raise rates? This never ending question is basically a waste of time, according to Brian Wesbury at First Trust. Monetary policy is is driven by money creation, not interest rates. Only when the Fed shrinks actual bank reserves, currently at $2.2 trillion, will a true tightening of monetary policy begin. Excellent read at Monday Morning Outlook. You can view it here.

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