Risk and sentiment
US M2 Money Stock YoY
Year-over-year change in US M2 money stock, used as a broad liquidity backdrop.
At a glance
US M2 Money Stock YoY: latest value and prior change
As of 2026-04-01, US M2 Money Stock YoY is 4.72 %. It is 0.15 pp higher than 4.58 % on 2026-03-01.
Across 124 available observations from 2016-01-01 to 2026-04-01, the latest value is at the tie-adjusted 50th percentile.
- Observed on
- Default comparison window
- 2016-01-01–2026-04-01
- Observations · observed cadence
- 124 · Monthly
- Data source
- FRED
A high or low percentile does not by itself make the indicator positive, negative, or a buy or sell signal.
Time-series chart
US M2 Money Stock YoY
2016-01-01–2026-04-01
Long-history series are stored as real provider observations. Index, FX, VIX, and ratio charts use historical backfill where providers expose it; Korean investor flow and margin-credit feeds expand as stable historical endpoints become available.
Interpretation guide
US M2 YoY: reading the tide of dollar liquidity
US M2 Money Stock YoY tracks the year-over-year growth of broad money — currency, checking and savings deposits, small time deposits, and retail money funds — published monthly by the Federal Reserve. It shows how fast the total pool of money is expanding or shrinking, serving as the liquidity backdrop for risk assets broadly.
What the pandemic cycle taught
Massive stimulus in 2020-2021 pushed M2 YoY to unprecedented growth above 20%, and that liquidity surge ran alongside powerful rallies in equities and crypto. The tightening phase of 2022-2023 then produced the first negative YoY readings in decades, coinciding with a broad risk-asset correction.
- During M2 expansions, money tends to reach even richly valued growth assets.
- During M2 contractions, markets typically pay lower multiples for the same earnings outlook.
- A May 2020 reclassification of savings deposits complicates direct comparisons across that boundary.
Level-based rules
Given the money growth needed to support nominal GDP, the neutral zone for M2 YoY sits roughly around nominal growth itself. The journey back from an extreme toward that zone is itself a major regime change for markets.
- Low-to-mid single-digit growth reads as neutral — liquidity neither flooding nor draining.
- Growth well above 10% can seed asset inflation and, later, consumer price pressure.
- Contraction below 0% is a rare event and signals a genuine liquidity headwind.
Caveats and cross-checks
The link between M2 and asset prices is neither mechanical nor consistently lagged. Velocity — how fast money circulates — can shift, so identical M2 growth can produce different outcomes.
- Frame it with the US Fed Funds Rate and the US Dollar Broad Index on TapeFlow to see the full liquidity picture.
- Use it to audit the backdrop behind bull and bear cases rather than to time short-term index moves.
- For Korean investors, dollar-liquidity contraction often pressures the won and foreign flows, so the FX channel matters as much as the level.