The St. Louis Fed has additional detail on this misleading statistic. There are several measures of money supply, but two count for the most in this discussion

The St. Louis Fed has additional detail on this misleading statistic. There are several measures of money supply, but two count for the most in this discussion. The poster chooses M1. This is all transaction deposit accounts: i.e., your checking account. M2 includes M1, but adds savings accounts and money market funds. These are very similar to checking accounts, but used to have limits on the number of checks you could write each month. Banks had to have reserves for M1, but not for M2. That limit on the number of checks per month was eliminated in 2020. Banks were essentially free to classify accounts as either transaction accounts (M1) or money market/savings accounts (M2). Most all the banks have lots of excess reserves, so it doesn't really matter which one they choose. So where is M2? Contrary to the excitable headline in this post, M2, which includes M1 and is a better overall indicator of cash sitting around, is up by about 25%. Still a significant number, but nothing like 344%. https://fred.stlouisfed.org/graph/?g=BlLz https://fred.stlouisfed.org/graph/?g=BlLz