WASHINGTON, Sept. 19 (Xinhua) -- Data released by the U.S. Federal Reserve (Fed) on Thursday showed that its M2 money stock increased in the week ending Sept. 9.
M2, the broad money supply, rose to 15.0112 trillion U.S. dollars from the previous week's 14.9989 trillion dollars, while M1, the narrow money supply, increased from 3.8725 trillion dollars to 3.8909 trillion dollars in the same period.
The Fed on Wednesday lowered interest rates by 25 basis points amid growing risks and uncertainties stemming from trade tensions and a global economic slowdown, following a rate cut in July that was its first in more than a decade.
The U.S. financial market bets the Fed may further lower its interest rate and provide more liquidity to support the expansion of the U.S. economy, as trade tensions between the United States and China persist and more mixed economic signals indicate slower domestic growth.
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 less than 50 percent, while the probability that Fed will hold its rate steady is slightly over 50 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.
