M2 is a broad measure of the US money supply, including cash, checking deposits, savings accounts, and money market funds. It serves as a key indicator of overall liquidity in the economy. Currently, M2 sits at an all-time high of approximately $22.6 trillion. Increases in M2 often precede inflation, as a greater supply of money in circulation can put upward pressure on prices. At the same time, a large M2 base suggests the economy has ample liquidity to support future investment and consumer spending.
Source: Board of Governors of the Federal Reserve System, The Business Week Graphic
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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