Deflationary forces should make Fed 'ecstatic' -financial advisor

STORY: Key among those forces, says Jones, is that thanks to Fed policies, money supply "is shrinking at 5%. To put that shrinking at 5% in context, since World War II money supply has never shrunk, not even .01%. So when we see money supply shrinking at 5%, that is oxygen - that is liquidity that's being drained from both financial markets and the economy."

Tightening credit and a drawdown on consumer savings complete the trifecta, says Jones, which he believes should lead the Fed eliminate further interest rate hikes.