Federal Reserve Increases Money Supply at Fastest Rate Since Pandemic

The Federal Reserve System is increasing the money supply at the fastest rate seen since the COVID-19 pandemic. Seasonally adjusted money supply has grown consistently every month since November 2023, indicating a loosening of monetary conditions despite the central bank's current interest rate policies.

Recent data shows the money supply grew by $103 billion in July, following a similar increase in June. This follows a significant surge of $256 billion in May, which represented the largest monthly increase since 2021. The acceleration of growth has occurred under the leadership of Kevin Warsh.