Money Supply

Money supply indicators track the total amount of money circulating in the economy. The Federal Reserve influences the money supply through monetary policy tools including open market operations and reserve requirements. Changes in money supply can affect inflation, interest rates, and economic activity. Currently, key indicators in this category include M2 Money Supply at $22,667.3B, Monetary Base at $5,388B. (Source: FRED)

Key Relationships

M2 money supply includes cash, checking deposits, savings, and money market funds. The monetary base is narrower, covering only currency in circulation and bank reserves. Rapid M2 growth has historically been associated with inflationary pressure, though this relationship has become less reliable. (Source: Federal Reserve via FRED)

How This Category Connects to Others

Money supply changes influence the Rates category, as the Fed controls the monetary base through open market operations and reserve requirements. Rapid money supply growth can contribute to Inflation if it outpaces economic output. Money supply conditions affect Consumer access to credit and the cost of borrowing. (Source: FRED)