WASHINGTON, Aug. 29 (Xinhua) -- Data released by the U.S. Federal Reserve on Thursday showed that its M2 money stock decreased for the week ending Aug. 19.
M2, the broad money supply, dropped to 14.9367 trillion U.S. dollars from the previous week's 14.9417 trillion dollars, while M1, the narrow money supply, decreased from 3.8589 trillion dollars to 3.8097 trillion dollars in the same period.
The U.S. financial market bets the Fed would further lower its interest rate and provide more liquidity to support the expansion of the U.S. economy, after the White House threatened to put more tariffs on some Chinese imports on Sept. 1.
According to the Chicago Mercantile Exchange Group's FedWatch tool, the probability of a 25-basis-point rate cut at Fed's September meeting is over 95 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.
