🇺🇸 LATEST: U.S. M2 money supply rose by $102.8 billion in July to a record $23.22 trillion, marking its 27th straight monthly increase.

What happened

The U.S. M2 money supply, which is the total amount of cash and easily spendable deposits in the country, increased by $102.8 billion in July, reaching a record high of $23.22 trillion. This marks the 27th month in a row that it has grown.

Confirmed

Global impact / market context

More money in the system can encourage spending and investing, potentially boosting company revenues. However, it may also lead to higher inflation, which can increase costs for businesses and affect the value of investments.

Analyst inference

This continued growth in the money supply suggests the economy is still expanding. For investors, it could mean a supportive environment for stocks, but also a reason to watch for rising prices and how the central bank might respond.

Analyst inference

What to watch

1. The reported increase of $102.8 billion in July is a confirmed fact. Watch for next month's report to see if this growth trend continues or slows down. Confirmed
2. Investors should consider how a growing money supply might affect their portfolio, particularly in sectors that are sensitive to interest rates or inflation, and adjust their strategy accordingly. Proposed
3. If the money supply keeps growing, the central bank might raise interest rates to control inflation, which could make borrowing more expensive for companies and potentially slow down economic growth. Analyst inference

Evidence

• x.com