This week on Inside the Economy, we discuss the different aspects of inflation, business and systems, and office spaces. Total U.S. household debt, which includes mortgages, auto loans, student loans, credit cards and more, has gradually increased over the years. But how much of that increase might be attributed to inflation? Has household debt grown faster than the overall cost of goods and services? M2, which includes highly liquid assets that can be converted into currency quickly, has grown to a four-year high. In 2023, M2 was declining, which can be viewed as a positive for inflation as money was being taken out of the system. Since then, M2 has returned to positive growth. If money had continued to be removed from the economy, where might inflation be today? We also take a closer look at what is driving the current inflation cycle, and how government revenues, spending, and fiscal policy might affect inflation. What options does the government have to increase revenues, and how could those changes affect the economy? Lastly, U.S. business activity has expanded at its fastest pace since 2021. Are both manufacturing and services seeing an increase in new orders and output? Tune in to learn more!
Key Takeaways:
- 10-year Bond at 5.18%
- Total household debt is at $18.8 trillion in Q2 2026
- Federal Budget Balance in Q2 at -5.6%
