Global broad money supply soars to $121.9 trillion, increasing by 7% to 8% annually, as central banks worldwide are collectively expanding their balance sheets at a pace unseen in the past decade.

🌍 Global money supply
As of May 2026, the global M2 money supply has reached a record high of $121.9 trillion. In the past two years, it has increased by $17.1 trillion, with an annualized growth rate accelerating to approximately 7% to 8%, and liquidity expansion is entering an accelerated phase.
📈 United States: M2 surpasses $22.7 trillion
In March 2026, the US M2 money supply hit a new high of $22.7 trillion, with a monthly year-over-year growth rate of about 4.57%. Month-over-month, it gently rose from $22.63 trillion in February 2026 to $22.69 trillion in March.
🇨🇳 China: M2 exceeds 353 trillion yuan
China’s broad money supply reached 353.86 trillion yuan (close to $49 trillion) by the end of March 2026, a year-over-year increase of 8.5%. Market expectations are that the YoY growth rate of M2 will fall back to around 7.9% by the end of April, but overall, it remains relatively stable, with M1 growth also rising above 5%, indicating increased economic activity.
🏦 Policy coordination: Fed slows balance sheet reduction
Starting March 2026, the Federal Reserve sharply reduced the monthly cap for US Treasury securities reduction from $25 billion to $5 billion, significantly slowing the pace of balance sheet reduction. The FOMC meeting at the end of April 2026 maintained the federal funds rate at 3.50% to 3.75%, with three consecutive pauses, fueling market expectations that quantitative tightening (QT) will end around the fourth quarter of 2026.
💡 Conclusion
Global liquidity is accelerating in expansion, with major economies’ M2 continuing upward, and monetary easing marginally supporting asset valuations and inflation expectations. Against the backdrop of coordinated liquidity expansion by central banks worldwide, the asset pricing environment is being rewritten.
#货币供应量 # Liquidity #美联储 # M2 #宏观经济 # Inflation