And The Money Never Stopped Moving…Fed Reports Biggest Rise in History of the Velocity of M2 Money Supply

The Federal Reserve has just reported the largest year over year rise in history of the velocity of the M2 money supply with a 10.6% increase from one year ago.

Photo credit: (FRED)

The Velocity of Money is defined by the Federal Reserve as:

…’the number of times one dollar is spent to buy goods and services per unit of time. If the velocity of money is increasing, then more transactions are occurring between individuals in an economy.’… (FRED 7/27/23)

The M2 Money Supply …’is the U.S. Federal Reserve’s estimate of the total money supply including all of the cash people have on hand plus all of the money deposited in checking accounts, savings accounts, and other short-term saving vehicles such as certificates of deposit (CDs). Retirement account balances and time deposits above $100,000 are omitted from M2.’… (Investopedia)

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