The M2 money supply, a broad gauge of circulating currency including cash, checking deposits, and money market funds, just surpassed its previous peak from March 2022. Year-on-year growth is now at 4.5%, the highest in 3 years, signaling a resurgence in liquidity.

Historically, increases in M2 have preceded inflation. The 2020 rise in M2 contributed to higher inflation in 2021, leading to tighter monetary policy.

BREAKING: The US M2 money supply jumped +4.5% Y/Y in May, to a record $21.94 trillion.

This marks the 19th consecutive monthly increase.

It has now surpassed the previous all-time high of $21.86 trillion, posted in March 2022.

Furthermore, inflation-adjusted M2 money supply… pic.twitter.com/HsCLFZSgAT

— The Kobeissi Letter…