Record M2 Levels Raise Concerns

In June 2025, the M2 money supply reached unprecedented levels, raising alarms for economist Rebecca Walser. She warns that increasing debt and rising stock valuations pose significant challenges for the Federal Reserve’s interest rate cutting strategy.

Economic Headwinds for the Fed

Walser emphasizes that the surging M2 could hinder the Fed’s efforts to cut rates amid a backdrop of escalating debt and stock prices, complicating the economic landscape.