Economy articles
What is the money supply, and how does it relate to inflation?
Grab your wallet – have any cash? Do you have a debit card? Are there coins loose in your sofa cushion? It’s all part of the national money supply. What is the money supply?The amount of money in the economy at any given time is called the “money supply” and it’s one of many metrics the Fed uses to monitor the economy — because of how it helps us understand inflation. Policymakers scrutinize the money supply to see what’s driving inflation so they can figure out how to mitigate it, an economic goal with no party lines. Broadly, the money supply is the total amount of money circulating through the economy. Specifically, the Federal Reserve defines it as the group of safe assets that households and businesses can use to make payments or hold as short-term investments, which includes both physical cash and money in accounts that are easily accessed. Economists commonly use two measures of money supply, M1 and M2. M1 includes physical currency in circulation along with checking, savings, retirement, and similar accounts. M2 is a broader measure that adds funds held in small-denomination time deposits (like certificates of deposit or CDs) and retail money market mutual fund shares. The main distinction between M1 and M2 is how easy it is to access these assets; M2 assets can be converted into cash, but it takes a bit more effort to access them than M1 assets.
How many jobs were added in the US last month?
In April 2026, about 115,000 jobs were gained. That's below the monthly average of 239,800 new jobs of the previous five years. This data comes from the Bureau of Labor Statistics' monthly Employment Situation Report, aka the “jobs report,” a closely watched economic indicator. These figures are often revised in later months as more complete data rolls in.
How much money does the US federal government collect?
About $5.26 trillion in fiscal year (FY) 2025. This is about $15,400 per person in the US, however individual contributions vary based on income, spending, and other factors. Government revenue is the total amount of money received from individual and corporate taxes, and other sources that are used to pay for government spending.
Are wages keeping up with inflation?
No. From April 2025 to April 2026, wages grew 0.24 percentage points slower than inflation. Nominal wages — the literal dollars earned regardless of cost of living — increased by 3.6% while inflation stood at 3.8%. When wage growth trails inflation, it indicates that workers are experiencing a decrease in purchasing power from the previous year.
What do Americans think of the economy?
In 2025, 45% of American adults felt that their local economy was in good or excellent shape, down from 46% in 2024. The share of Americans assessing the state of the national economy as good or excellent dropped from 29% in 2024 to 26% in 2025.The Federal Reserve produces an annual report on the economic well-being of US households, allowing for comparisons over time.How have Americans’ feelings about the economy changed?In 2019, 50% of adults felt that the national economy was in either good or excellent shape, while 63% thought the same of their local economy. In 2022, both sentiments hit low points at 18% nationally and 38% locally.Both figures have been increasing since 2022 but show a decline as of 2025.
How many people skip medical treatment due to healthcare costs?
In 2025, 26% of American adults skipped some form of medical treatment because they couldn’t afford it, according to the Federal Reserve. This is lower than the 28% who avoided care in 2024 and is the lowest percentage since 2022.The probability of declining medical care seems to correlate with income: 38% of people with a family income under $25,000 skipped some medical treatment in 2025, compared to 13% of people with incomes over $100,000.
How much revenue does the federal government collect from tariffs?
The federal government collected $194.9 billion in revenues from tariffs in FY 2025. This figure reflects revenue from tariffs and other import-related fees, also known as customs duties. Customs duties are taxes and fees paid by US importers and collected by US Customs and Border Protection on goods imported into the country, which generate revenue for the federal government.
How many people are laid off in the US each month?
About 1.87 million in March 2026. This includes all terminations of employment by an employer — called layoffs and discharges — such as permanent layoffs, temporary layoffs, and terminations because of mergers, downsizing, closings, or employee performance.
What is the labor force participation rate in the US?
The US labor force participation rate was 61.8% in April 2026. The labor force participation rate measures the percent of people ages 16 and older engaged in the labor market, including those who are working or who are unemployed but actively looking for a job.
What is the federal government's budget deficit?
The federal government’s fiscal year (FY) 2026 budget deficit is about $953.6 billion as of April. A budget deficit occurs when the federal government spends more money than it brings in through taxes, customs duties, the sale of assets, and other revenues. When the government has a deficit, it borrows money by selling bonds and other securities in order to pay for it, adding to the national debt. A budget surplus, on the other hand, occurs when the government brings in more money than it spends.
How much does the US federal government spend?
The federal government spent $7.04 trillion in fiscal year (FY) 2025. This averages about $20,600 per person in the US. The amount the government can spend depends on the amount of revenue it collects (e.g., through taxes, customs duties, and other sources). If it has to spend more revenue than it brings in, it borrows the funds, creating debt.
How has inflation affected your dollar?
Inflation, simply put, is the rise in prices over time. As a result, each dollar buys less than it did before. Use this inflation calculator below to track the value of the dollar. See how a dollar has changed in worth during your lifetime, or even as far back as 1913, when the data begins. Or reverse the numbers and track what the cost of an item today was worth in the past.
What kinds of jobs do young people have?
Youth employment, after a period of decline, is picking up. More and more people from the ages of 16 to 24 are working, jumping into roles in leisure and hospitality, and retail. Youth labor force participation dropped 5.8 percentage points from 2005 to 2015 but increased by 0.6 points from 2015 to 2025. People ages 16 to 19 years, are participating in the workforce at higher rates than teens in years prior, causing a rise in youth employment. What kinds of jobs are common for young people?In July 2025, 56.2% of employed young people ages 16 to 24 worked in hospitality, retail, or education and health services industries.About a quarter of people in this age range had jobs in leisure and hospitality, the highest percentage of young people in any industry. This includes jobs such as amusement park attendants, musicians and singers, fitness trainers, food preparation and servers, cooks in sit-down and fast-food restaurants, hotel and resort clerks, and waiters and waitresses.
What the Personal Consumption Expenditures Index (PCE) says about the US
When Americans consider rising and falling prices, they often focus on the national inflation rate. However, there are many ways to assess the costs of goods and services, including the Personal Consumption Expenditures Price Index (PCE).The PCE is a monthly assessment of the prices people in the United States pay for goods and services across a wide range of consumer expenses. Much like the Consumer Price Index (CPI), the PCE reflects changes and insights into consumer behavior.What are the differences between the CPI and the PCE?Both the CPI and PCE examine the state of consumer prices in the United States. They are released monthly and also offer a “core” version of the price index that excludes the most volatile categories: food and energy.One of the main differences between the two is who reports them. While the Bureau of Economic Analysis is responsible for the PCE, the Bureau of Labor Statistics releases the CPI based on the Consumer Expenditure Survey conducted by the Census Bureau. The PCE is based on multiple business-focused Census surveys, such as the Service Annual Survey and the Quarterly Services Survey.The PCE and CPI also use different mathematical formulas to analyze data.Insight into consumption and spending behaviorsThese methodological differences mean that the PCE measures the change in goods and services consumed by all households and the nonprofit institutions serving them. As a result, the PCE provides insights into items and expenditures that are outside the scope of the CPI.A good example is medical care services. The PCE includes services that are paid for on behalf of consumers through employer-provided health insurance and programs like Medicare and Medicaid. In comparison, the CPI only includes household out-of-pocket expenses.
How much debt does the US have?
The US has $39 trillion in debt as of April 2026. The federal government borrows money when its spending and investments cannot be funded by federal revenue alone; this debt enables the government to pay for programs and services when funds aren’t immediately available.
What is the value of US trade overall?
$3.43 trillion in exports and $4.34 trillion in imports in 2025. Benefits of trade can include higher wages and job growth, a wider variety of products available at lower prices, increased productivity, and more efficient resource allocation
What are the biggest drivers of inflation in the past year?
Housing and transportation were the main drivers of inflation from April 2025 to April 2026. As of April 2026, overall prices increased 3.8% over the previous year. Of this, 1.6 percentage points came from price increases in housing, or about two-fifths of it.The inflation rate is calculated using the Consumer Price Index (CPI), which tracks the price changes of a consistent basket of goods and services over time. Each item in this basket is given a weight that reflects how much the average urban household spends on it. Items with higher weights, like shelter, tend to have a larger impact on the overall inflation rate than other categories. By examining the price changes across different categories, we can better understand the factors contributing to the current inflation rate.
What is the average wage in the US?
The average wage was $1,283 per week in April 2026, 0.2% lower than a year before. The average weekly wage, the typical earnings that employees bring home for one week of work, is a valuable indicator to assess economic conditions, labor market health, and wage trends.
How many job openings are there in the US?
About 6.87 million, as of March 2026. The number of job openings decreased by 86,000 from March 2025. A “job opening” is defined as a position open on the last business day of the month. To be considered “open,” a job must meet three conditions: (1) There’s work available for the position; (2) The job could start within 30 days; and (3) The employer is actively recruiting.
How much federal money goes toward all state and local governments?
The federal government provided $1.22 trillion to state and local governments in fiscal year (FY) 2025. This total includes money transferred to states, tribal governments, and local governments, such as cities and counties. Federal funding helps state and local governments pay for things like infrastructure, education, and health care for low-income people. In FY 2025, these transfers made up 17% of all federal spending.