WASHINGTON, Oct. 17 (Xinhua) -- Data from the U.S. Federal Reserve (Fed) on Thursday showed that its M2 money stock increased for the week ending Oct. 7.
M2, the broad money supply, rose to 15.1444 trillion U.S. dollars from the previous week's 15.1052 trillion dollars, while M1, the narrow money supply, decreased from 3.9253 trillion dollars to 3.8876 trillion dollars in the same period.
The Fed lowered interest rates by 25 basis points last month amid growing risks and uncertainties stemming from trade tensions and a global economic slowdown, following a rate cut in July that was its first cut 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 data signals 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 October meeting is around 85 percent, while the probability that the Fed holds its rate steady is around 15 percent.
M1 is commonly known as a measure of money supply, which includes cash and checking deposits, while 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.
