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2026-11-08

US Excess M2 Growth and PCE Inflation Diverge Most of the Time Since 1960

US Excess M2 Growth and PCE Inflation Diverge Most of the Time Since 1960

Key points

Excess M2 growth vs headline PCE inflation, 1960-2026 | The two move together mainly in extreme high-inflation periods and otherwise drift apart

Image source: @stlouisfed