UNITED STATES M2 CURRENCY SUPPLY INCREASED BY 5.41 PER CENT TO $23.22 TRILLION PER YEAR IN JULY, WITH INFLATION FALLING TO 2 PER CENT DIFFICULT TO ACHIEVE

ON 26 AUGUST, THE UNITED STATES FEDERAL RESERVE BANK OF ST. LOUIS RELEASED THE LATEST DATA IN ITS FRED DATABASE: THE UNITED STATES SEASONALLY ADJUSTED M2 CURRENCY SUPPLY IN JULY 2026 WAS $23.22 TRILLION, AN INCREASE OF 5.41 PER CENT OVER THE SAME PERIOD, THE FASTEST INCREASE SINCE MID-2022, MAKING IT MORE DIFFICULT FOR THE FEDERAL RESERVE TO REDUCE INFLATION TO THE 2 PER CENT TARGET. M2 IS A BROAD MONETARY SUPPLY INDICATOR THAT INCLUDES MORE LIQUID ASSETS SUCH AS M1 (CASH IN CIRCULATION, CURRENT DEPOSITS, ETC.) PLUS SMALL-VALUE TERM DEPOSITS, RETAIL MONEY MARKET FUNDS, ETC. THE SEASONALLY ADJUSTED M2 IS CONSTRUCTED BY MEANS OF SEASONALLY ADJUSTED COMPONENTS。