WASHINGTON, Aug. 22 (Xinhua) -- Data released by the U.S. Federal Reserve (Fed) on Thursday showed that its M2 money stock increased for the week ending Aug. 12.
M2, the broad money supply, rose to 14.9554 trillion U.S. dollars from the previous week's 14.9408 trillion dollars, while M1, the narrow money supply, decreased from 3.8825 trillion dollars to 3.8723 trillion dollars in the same period.
Even though the money liquidity in the U.S. financial market was rising according to the Fed's report, the financial market bets the Fed would lower the interest rate and provide more liquidity for the U.S. economy, after the White House said on Aug. 1 that the United States planned to impose more tariffs on Chinese imports.
All eyes will be on the U.S. Federal Reserve Chairman Jerome Powell on Friday morning, when he speaks at the Fed's annual Jackson Hole Economic Policy Symposium in the state of Wyoming.
According to the Chicago Mercantile Exchange Group's FedWatch tool, the probability of a 25-basis-point rate cut on Fed's September meeting is over 90 percent.
M1 is commonly known as a measure of money supply, which includes cash and checking deposits. M2, the most critical indicator of money supply and inflation, includes all elements of M1 as well as savings deposits, money market securities, mutual funds, and other time deposits.
