US Money Supply Hits 59-Month Growth Peak

The Federal Reserve System has increased the U.S. money supply at the fastest rate seen since the COVID-19 pandemic, with consistent monthly growth since November 2023. In July 2026, the Rothbard-Salerno true money-supply measure grew 8.62 percent year-over-year to exceed $19.71 trillion, while the M2 money supply reached a record high of $23.1 trillion.

This monetary expansion persists despite weak economic indicators, including a 1.5 percent second-quarter GDP growth estimate and the loss of 1.2 million jobs since late 2025. Federal Reserve Chairman Kevin Warsh acknowledged that core PCE inflation remained at 3.7 percent in July, marking 65 consecutive months above the 2 percent target. While Warsh pledged to return inflation to that target, critics argue the central bank is driving growth through rate cuts and the purchase of Treasuries to support asset prices.

Recent data shows the Federal Reserve increased its portfolio by $124 billion over the past year. This trend coincides with a sharp decline in reverse repurchase agreements, which fell from a peak of $2.55 trillion in December 2022 to near zero by May 2024. Analysts suggest these conditions may force the central bank to continue lowering interest rates regardless of current inflation levels.