The May numbers are in and US Industrial Production YoY rose to 2.2% YoY (although on a MoM basis it remained flat). Notice that as soon as The Fed stopped doing quantitative easing (dotted light blue line where it flattens), industrial production growth started to decline.
The same holds true for US Capacity Utilization. Capacity utilization was rising since the US exited The Great Recession in June 2009, but started to decline once QE was halted. Only in the past few months has capacity utilization started to rise again (with the exception of May).
It appears that the US economy may be addicted to gov (or at least The Federal Reseve).
Here is Federal Reserve Vice Chair Stanley Fischer leading the Open Market Committee in singing “Addicted To Gov.”
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