M2 currency supply will rise to December to $ 21.5 trillionJust shy all the time high.
The M2 currency supply measures the total amount of money in circulation within an economy, including both liquid and less liquid properties. Meanwhile, the CPI index monitors the average price change of goods and services over time, indicating inflation.
Continued growth in the M2 currency supply is a bullish indicator for risk assets as it indicates that more liquidity enters the system, which usually finds itself in risk assets.
M2 currency supply has been clocked at a new monthly high each month since January 2024. The M2 currency supply influences the CPI by affecting inflation trends. While the Federal Reserve is actively strictly by the volume of emergence and maintaining the Fed fund rate at a high level while trying to return the CPI to 2% target inflation, M2 money supply continues that is growing.
