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Liquidity: Normal
How much money is flowing through the financial system. Liquidity is close to its 20-year middle.
Score -0.07 on a −2 to +2 scale: the average of 2 indicators, each placed by where today sits in its last 20 years. Indicators where a higher number means less liquidity are flipped.
Indicators
M2 money supply
5.7%→ flat
vs. a year ago · Sep 2026
46th pct
3-mo change +0.41 % pts
Fed balance sheet
2.8%→ flat
vs. a year ago · Nov 11, 2026
51st pct
3-mo change +1.04 % pts
Connections
Fast money growth has sometimes come before inflation; the link is unstable. Typical lag: 12-24 months. Strongest match 18 months later (correlation 0.50, 351 observations since 1996).
Fed asset buying adds liquidity, often supportive for risk assets. Typical lag: weeks-months. Strongest match 10 months later (correlation 0.26, 266 observations since 2003).