US M2 money supply rises $125B in August to $23.3T

Summary

The U.S. M2 money supply increased by $124.9 billion in August 2026, reaching a record high of $23.34 trillion, marking the 28th consecutive monthly rise and totaling an increase of $2.61 trillion over this period. This growth reflects a year-over-year increase of 5.7%, the most significant since June 2022, and contrasts sharply with the 2.0% increase observed in August 2024. Since the onset of the 2020 pandemic, the M2 money supply has soared by $7.85 trillion, averaging about $1.21 trillion annually, indicating an acceleration in U.S. money creation.

Analysis

US M2 money supply: US M2 money supply is a Federal Reserve measure of broadly accessible money that includes M1 along with small-denomination time deposits and retail money-market fund balances. It is the subject of the reported August increase, reaching a record level as the pace of year-over-year growth accelerated. Definition: The Federal Reserve defines M2 as M1 plus small-denomination time deposits and balances in retail money-market funds, with specified retirement-account balances excluded. Growth trend: Independent data series show M2 was approximately 5.7% higher than a year earlier in August 2026, confirming the reported acceleration in broad-money growth. Latest reading: Federal Reserve data show seasonally adjusted M2 at a record 23,342.8 billion in August 2026, up from 23,217.9 billion in July.

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macropolitics

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