This is CBS I on the world with John Bachelor.

Here's John Bachelor.

The American Economy, I welcome... Here's John Batchelor.

The American Economy, I welcome Elizabeth Peek, a columnist at the Hill,

columnist at Fox News, much on Fox Business.

We address the economy in terms of the Federal Reserve's interest rates,

which raised the cost of everything from the spring of 22 until the fall of 23. And now, Liz, a very good evening to you.

Golf Times is reporting that the Wall Street Journal notes that although U.S. Federal Reserve

stop raising interest rates,

it is tightening monetary policy through reducing its balance sheet.

What does that mean, Liz, reducing its balance sheet?

Is that a good thing?

Good evening to you. Good evening John. Well it's the

opposite of QE, remember quantitative easing, now we're in QT and it had to happen John because the

Fed blew up its balance sheet to, I've forgotten the peak seven trillion dollars something like that

but it had to come down and so gradually they have been doing that And I think yes it has had some impact on the money

money supply. Remember Milton Friedman's comment that inflation everywhere

was always a product of the money supply.

And so if you're trying to tame inflation, you want to rein in the money supply

which exploded during COVID and in the year after that. So it isn't any great surprise.

I think where we are is that the Fed actually has been successful. They think they have been successful in reducing inflation.

The PPI report, producer price index report that came out on Friday was consistent with that expectation.

...