Bernake has been restricting the money supply since last August. The current inflation is just a side-effect of the previous hangover plus loose credit markets.
Are you f*cking kidding me, kewp? The money supply has been restricted?? Do you know how this system works?
M2 increased $16.3 billion in the week ended Feb. 11, according to data released late Thursday by the Federal Reserve. M2 has advanced $139 billion to $7.585 trillion over the past four weeks, the most for any four weeks since September 2001, when it advanced $207 billion over a four-week span.
To bring the funds rate down, the Fed must do something: inject reserves into the banking system.
By increasing the supply of money, the price of money decreases, and that is how the Fed achieves a lower funds rate.
