MACRO

Research Summary

The article discusses the recent data on M2 Money Supply released by the Federal Reserve. The author notes a year-on-year decline in the M2 Money Supply, but also a slight upward re-acceleration. The M1 money supply, which only includes money in circulation, is trending lower each month. However, M2, which includes deposits, has seen a slight reversal in the downtrend since April. The author suggests that this could be due to banks starting to pay more on deposits, leading people to save more, or due to fears of an impending recession.

Actionable Insights

  • Monitor the M2 Money Supply: The M2 Money Supply data is released by the Federal Reserve on the last Tuesday of every month. It’s important to keep track of this data as it can provide insights into economic trends.
  • Understand the implications of Money Supply changes: Changes in the M2 Money Supply can have various implications, including changes in bank deposit rates and potential shifts in consumer behavior due to economic fears.

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