The M2 money supply in the United States increased by 5.41% year-on-year to $23.22 trillion in July, making it challenging to achieve the 2% inflation target.

BlockBeats News, August 26th, the U.S. Federal Reserve Bank of St. Louis FRED database released the latest data: the seasonally adjusted M2 money supply in the United States for July 2026 was $23.22 trillion, a year-on-year increase of 5.41%, the fastest growth since mid-2022, which may make it more challenging for the Federal Reserve to bring inflation down to the 2% target.

M2 is a broad money supply indicator that includes M1 (cash in circulation, demand deposits, etc.) plus small-denomination time deposits, retail money market funds, and other relatively liquid assets. The seasonally adjusted M2 is constructed by separately seasonally adjusting the relevant components and then summing them up.