Money supply is back in the Fed's monetary policy report under Warsh

The return of money supply analysis to the Federal Reserve's semiannual report was reported by Kyle Campbell at American Banker. The report landed on July 10. It is the first under Chairman Kevin Warsh. It said M2 was 4.7 percent higher in the first five months of 2026 than in the same period of 2025, and that growth rates have moved closer to the range typically seen in the 2010s. It said the increase in the public's real money balances during the pandemic has largely unwound, and that the velocity of money sits around its fourth-quarter 2019 level. American Banker reported that money supply has featured little in recent Fed reports, and noted Warsh has emphasized monetarism, the theory that money supply drives growth.