Federal Reserve money supply contracts for third straight month, falls 2.35% in February

The Federal Reserve’s money supply keeps contracting.

Last month, the U.S. central bank’s M2 money supply contracted 2.35 percent, the third consecutive monthly decline.

Here is the chart:

For the first time it started sharing this data in the 1960s, the Fed witnessed its first contraction ever in December.

Of course, this is a lagging indicator, so it should be interesting to see if it will increase in the next update (March), which should factor in the Eccles Building’s bailout of Silicon Valley Bank and Signature Bank.