Central Banks Are Losing Their Grip On Money Supply

Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates · Sep 21, 2026 · 11m · transcript

For decades, central banks relied on the federal funds rate as their primary lever to steer the economy. But a quiet shift in how money moves through the banking system has changed that dynamic. In this episode of Fexingo Business, we explore why the relationship between interest rates and the broader money supply is fracturing. We look at specific data from the last eighteen months showing that even as policy rates remain elevated, credit creation has slowed in unexpected sectors while liquidity pools have grown elsewhere. Lucas walks through the mechanics of reserve requirements and excess…