The U.S. Money Supply Just Hit an All-Time High -- and It May Mean Trouble for Wall Street

Group 1 - The M2 money supply in the U.S. has reached a record $22.2 trillion, which could indicate potential issues for the stock market [2][7] - M2 is a critical monetary aggregate that influences economic growth, inflation, and stock market performance [2][3] - The Federal Reserve's monetary policy, particularly its interest rate adjustments, significantly impacts the M2 supply [4][5] Group 2 - Following a period of tightening monetary policy from early 2022 to late 2023, M2 began to rise again in October 2023 as banks anticipated rate cuts and increased lending [5][6] - An increase in the money supply can lead to higher consumer spending, which may contribute to inflation if it outpaces economic growth [6] - The current increase in money supply is pushing stock valuations to historically high levels, indicating a potential bubble [7][8]