M2
M2SL • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
22,020.80
Year-over-Year Change
4.53%
Date Range
1/1/1959 - 6/1/2025
Summary
M2 represents the total money supply in the U.S. economy, including cash, checking deposits, savings deposits, and money market securities. It is a critical indicator of economic liquidity and potential inflationary pressures.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
Economists use M2 to understand monetary conditions and potential economic expansion or contraction. The metric provides insights into how much money is circulating in the financial system and can signal potential changes in economic activity.
Methodology
The Federal Reserve calculates M2 by aggregating cash, checking accounts, savings deposits, money market mutual funds, and small-denomination time deposits.
Historical Context
Central banks and policymakers monitor M2 to assess monetary policy effectiveness and potential inflationary risks.
Key Facts
- M2 includes more liquid assets than M1 money supply
- Significant changes in M2 can indicate potential economic shifts
- Tracked weekly by the Federal Reserve
FAQs
Q: What does M2 include that M1 does not?
A: M2 includes savings deposits, money market securities, and mutual funds, which are less liquid than M1's cash and checking accounts.
Q: How often is M2 updated?
A: The Federal Reserve updates M2 data weekly, providing a current snapshot of money supply.
Q: Why do economists care about M2?
A: M2 helps economists understand potential inflationary pressures and overall monetary conditions in the economy.
Q: Can M2 predict economic trends?
A: Significant changes in M2 can signal potential future economic expansions or contractions, though it is not a definitive predictor.
Q: What are the limitations of M2?
A: M2 does not capture all forms of money and credit, and its predictive power can vary depending on economic conditions.
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Related Trends
Citation
U.S. Federal Reserve, M2 [M2SL], retrieved from FRED.
Last Checked: 8/1/2025