Velocity always seems to be treated as independent. When velocity plummets, Fed increases money supply. When velocity recovers, the money supply never shrinks. It is a one-way ratchet. Why is that?
People who enjoy the cheap capital afforded by the Fed increasing supply do not want to see their gravy train end, even if it is better for the economy as a whole to temper it while it's hot. See Trump et al gnashing their teeth at the fed for talking about raising rates back in 2018.
