M2 Money Supply Grows By Most In 2 Years

2025-05-29 03:00:00 ET

Summary

• Money Supply helps show how tight or loose current monetary conditions are, regardless of what the Fed is doing with interest rates.
• Seasonally Adjusted Money Supply has been growing on a consistent monthly basis for over a year.
• Non-seasonally adjusted shows a drop for the month of April, with a small increase in May.
• Money Supply is still growing at relatively high rates which will keep inflation in focus for the time being.

Money Supply is a very important indicator. It helps show how tight or loose current monetary conditions are, regardless of what the Fed is doing with interest rates. Even if the Fed is tight, if Money Supply is increasing, it has an inflationary effect....

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