What the M2 money supply measures
M2 is the Federal Reserve’s broad measure of the money stock. It includes currency in circulation, checking and other liquid deposits, savings deposits, small time deposits such as CDs under $100,000, and retail money market fund balances. This chart shows the seasonally adjusted level in trillions of dollars, monthly since 1959.
How to read this chart
Because the economy and prices grow over time, M2 rises almost every year, so the level climbs steadily. The meaningful information is in the slope: a steeper line means money is growing faster. The near-vertical jump in 2020–2021 reflects pandemic stimulus and Fed asset purchases; the dip that followed was the first sustained decline in M2 since the series began.
The latest reading in context
- At $23.41T, the latest reading is above its 5-year average of $21.60T and above its 10-year average of $18.68T.
- That is higher than 100% of all monthly readings since January 1959 – near the top of its historical range.
- Direction: up 0.5% over the past month; up 3.5% over the past six months; up 5.7% over the past year.
- The highest value on record is $23.41T (September 2026, this year); the lowest is $0.29T (January 1959, 67 years ago).
- The full history spans 9 US recessions, shaded grey on the chart.
Why it matters
Monetarist economists see fast money growth as a warning sign of future inflation, and the 2020–2021 surge did precede the 2021–2022 inflation. The link has been loose over most of the past 40 years, however, and the Fed no longer targets money growth. M2 is still watched as a sign of how much spending power is sitting in households’ and businesses’ accounts.
What moves the M2 money supply
- Bank lending, which creates deposits
- Federal Reserve bond purchases (quantitative easing) and sales
- Government deficits and stimulus payments
- Shifts between deposits and higher-yielding assets as interest rates change
Key moments in its history
- 1970sGrowth above 10% a year in several years, alongside high inflation.
- 2020–2021Grew about 25% in a year, the fastest pace on record.
- 2022–2023Shrank year over year for the first time since 1959 as the Fed tightened.
M2 Money Supply data tables
Average by decade
| Decade | Average | High | Low |
|---|---|---|---|
| 2020s (so far) | $20.88T | $23.41T | $15.43T |
| 2010s | $11.78T | $15.35T | $8.47T |
| 2000s | $6.48T | $8.52T | $4.67T |
| 1990s | $3.68T | $4.64T | $3.17T |
| 1980s | $2.31T | $3.15T | $1.48T |
| 1970s | $0.98T | $1.47T | $0.59T |
| 1960s | $0.43T | $0.59T | $0.30T |
| 1950s | $0.29T | $0.30T | $0.29T |
Last 12 months
| Period | Value | Change |
|---|---|---|
| Sep 2026 | $23.41T | +0.5% |
| Aug 2026 | $23.30T | +0.5% |
| Jul 2026 | $23.18T | +0.4% |
| Jun 2026 | $23.08T | +0.4% |
| May 2026 | $22.98T | +1.1% |
| Apr 2026 | $22.73T | +0.5% |
| Mar 2026 | $22.61T | +0.2% |
| Feb 2026 | $22.57T | +0.8% |
| Jan 2026 | $22.39T | +0.3% |
| Dec 2025 | $22.33T | +0.3% |
| Nov 2025 | $22.25T | +0.1% |
| Oct 2025 | $22.22T | +0.3% |
Monthly values. Decade figures are averages of the monthly values in each decade. The complete history is available as a CSV file.
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M2 Money Supply: questions and answers
What is the difference between M1 and M2?
M1 is the narrowest measure: currency plus checking and other liquid deposits (since 2020 it also includes savings deposits). M2 adds small time deposits and retail money market funds.
Does more money cause inflation?
Over long periods and in extreme cases, very fast money growth is associated with inflation. Over shorter periods the relationship is weak, because how fast money is spent changes a lot.
Who publishes M2?
The Board of Governors of the Federal Reserve System, in its monthly H.6 Money Stock Measures release.
Where does the data on this chart come from?
From the Board of Governors of the Federal Reserve System. ChartWidgets downloads the series (M2SL) from FRED, the Federal Reserve Bank of St. Louis database, and checks for new releases every day. The last update was on November 1, 2026.