The amount of money in the U.S. increased at the fastest clip since the summer of 2022 last month, the latest data showed. It isn’t necessarily good news.
The money supply, as measured by M2, sums up the dollar bills, coins, and deposits held by the public at commercial banks and other institutions, as well as their balances in retail money-market funds and more. Data released by the Federal Reserve on Tuesday afternoon showed the total increased by 3.9% to kick off 2025.
It was the largest year-over-year gain since July 2022.
