Yikes! According to the Federal Reserve of St Louis FRED, the velocity of M2 Money Stock (Nominal GDP / M2 Money Stock) just crashed to 1.097, the lowest in modern history.
As of today, Bankrate’s 30-year mortgage rate just hit an all-time low (thanks to The Fed’s massive reaction to Covid-19 virus economic shutdown. Note: Bloomberg has not updated its M2 Money Velocity chart which is now 1.097.
But stocks are soaring with The Fed’s QE.