Citi Inflation Surprise Index Remains Elevated With M2 Money Surge (Did The Fed Overreact??)

Covid struck in early 2020 and The Fed spiked the punchbowl with a massive surge in M2 Money. Like a storm surge.

Today’s unemployment report showed initial jobless claims and continuing jobless claims ALMOST at pre-Covid levels.

So it appears that The Fed’s job is done (under the assumption that The Fed had anything to do with the recovery).

So did The Fed almost violently overreact to the Covid crisis? The Atlanta Fed’s Raphael Bostic says it is too early to withdraw while St Louis Fed’s James “Bully” Bullard says it is time to taper.

Really Raph? 18.8% price growth is not enough for you?