The Big Insight: At the start of the pandemic, the Federal Reserve rapidly expanded the supply of money in our economy to help stave off a recession. But now, the money supply is growing slower than any time since the Great Depression.
The Federal Reserve oversees the nation’s money supply — the total amount of cash, coins, bank balances, and other liquid instruments in circulation. In addition to raising and lowering interest rates, the Fed can choose the rate at which it creates new currency, which can impact both economic activity and inflation.
Here are five facts on America’s money supply.
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