Starting in 2021, we saw a decline in a measure of the U.S. money supply called the M2 money supply. M2 includes cash in circulation, deposit accounts, money market accounts, and certificates of deposit. It’s basically all the easily accessible money in the country. By 2022, amid tightening policies from the Federal Reserve, year-over-year growth in the M2 money supply was negative. It stayed that way through the first quarter of this year.
But M2 money supply is finally growing again. In April and May, M2 money supply increased about 0.6% year over year. While it remains well below its peak levels from 2022, we’re finally seeing increased liquidity.
US M2 MONEY SUPPLY YOY DATA BY YCHARTS
www.fool.com/investing/2024/07/04/us-money-supply-is-finally-growing-again-and-it-co/
ALERT: M2 money supply is now expanding after a 16 month contraction
ht g.o.t. pic.twitter.com/soxvux4S2r
— Win Smart, CFA (@WinfieldSmart) August 9, 2024
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