Part 5/11:
On the topic of monetary policy, Wood analyzed the current year-on-year increase in the M2 money supply, placing the figure around 3.9%. This growth rate historically precedes inflation trends and Wood contends that this could lead to a drop in inflation rates, potentially even reaching 0% or less. She stated that the Federal Reserve will likely remain steadfast in its inflation target of 2%, expecting only minor interest rate reductions should inflation persist in its current state.