Satoshi Gazette
POLICY

Warsh Says Money Matters. M2 Rose 0.89% From May to July

At the Fed chair's 100-day mark, SG reproduces the broad-money calculation behind a public critique, then separates what the data proves from what Bitcoin's fixed issuance actually changes.

BY SATOSHI GAZETTE/POLICY DESK//2 MIN

An open monetary ledger stands beyond a bank of opaque financial controls.
IMAGE: Satoshi Gazette

Kevin Warsh used his August 28 Jackson Hole address to say money matters, that the Fed should track money created by both the central bank and the financial system, and that responsibility for 65 months of elevated inflation rests with the central bank. Those are unusually direct standards. They also make the monetary record worth measuring rather than cheering.

FRED's seasonally adjusted M2 series rose from 23,013.9 billion dollars in May to 23,218.0 billion in July: a 204.1 billion increase, or 0.8868 percent. Multiplying that two-month rate across six equal periods gives a simple annualized pace near 5.32 percent; compounding it gives roughly 5.44 percent. The May observation predates Warsh's May 22 swearing-in, so this is a first-100-days overlap, not a clean causal scorecard.

Seasonally adjusted U.S. M2 rose $204.1 billion from May to July 2026. The window overlaps most, but not all, of Kevin Warsh's first 100 days as Fed chair.

M2 is broad money, not a literal counter of dollars printed by the chair. Bank credit, deposits, portfolio choices and policy conditions all matter, and the series can be revised. Peter Schiff's post supplies a useful challenge; the official data supplies the number. Warsh himself acknowledged that both central-bank money and money from the banking and financial systems matter.

Bitcoin changes the governance question, not the uncertainty of life. Its subsidy follows a public 210,000-block halving rule toward a 21 million cap; no chair sets next month's issuance. That does not guarantee price performance, protect a careless custodian or eliminate software risk. It does mean the supply rule can be checked before the speech, after the speech and without trusting the speaker.