The upcoming monetary tsunami. JP Morgan echoes what I have said for months about the upcoming "monetary tsunami." Therefore, why does a higher money supply not lead to an inflationary burst? This is due to a decline in money velocity and a moderating trend in government spending, which was the primary driver of inflation from 2021 to 2024. Hence, money growth is private sector led, which is not inflationary when money velocity is stable or declines. I would expect an increase in asset prices and a decrease in core and headline consumer prices. via JP Morgan