The Money Supply Is Growing Again

For all of the Fed’s tough talk, the money supply as measured by M2 is growing again.

M2 sat at $15.5 Trillion in Feb 2020 (pre-Covid), peaked at $21.7 Trillion in July 2022 (a 40% increase) and bottomed at $20.7 Trillion in April 2023 during the Fed’s recent QT cycle (trimming $1 Trillion from the Fed’s balance sheet is nothing). M2 currently sits at $20.9, up 1% from April’s bottom. Never mind what the Fed does with its Fed Funds rate, if the Fed continues to expand M2, asset prices will move higher.

Click HERE to expand chart. M2 as measured from Jan. 2019 through July 2023.

Click HERE to expand chart. M2 vs. CPI vs. S&P 500 year-over-year percentage change as measured each month.

Asset Management
Economy
Investing

TEK2day

The Money Supply Is Growing Again

For all of the Fed’s tough talk, the money supply as measured by M2 is growing again.

One thought on “The Money Supply Is Growing Again”

For all of the Fed’s tough talk, the money supply as measured by M2 is growing again.

Share this:

One thought on “The Money Supply Is Growing Again”