About money and debt indicators
The M2 money supply shows how much money is held in cash, bank accounts and money market funds, and the Fed balance sheet shows the bonds the central bank bought to create it. Both grew at record speed in 2020 and both are central to debates about inflation.
On the government side, the federal deficit shows how much more Washington spends than it collects each year. Deficits add up to the national debt, which debt to GDP puts in proportion to the economy, and federal interest payments show what carrying that debt costs. Together they are the core of the long-running debate about US fiscal policy.
Quick reading tips
- The deficit chart adds up 12 months to remove the April tax-season swing.
- M2 and the debt are shown in trillions of dollars, not adjusted for inflation.
- The daily Debt to the Penny total is shown on the national debt chart.