U.S. Fed's M2 money stock rises last week

Source: Xinhua| 2020-02-07 11:30:22|Editor: huaxia

WASHINGTON, Feb. 6 (Xinhua) -- Data released by the U.S. Federal Reserve (Fed) on Thursday showed that its M2 money stock increased for the week ending Jan. 27, as M1 money stock decreased in the meantime.

M2, the broad money supply, rose to 15.4948 trillion U.S. dollars from the previous week's 15.46 trillion dollars, while M1, the narrow money supply, dropped from 3.9815 trillion dollars to 3.9678 trillion dollars in the same period.

M1 is commonly known as a measure of money supply, which includes cash and checking deposits. M2, the well-known 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.

In September 2019, a quick surge of money demand emerged in the U.S. money market, sending the interest rates in the U.S. money market to nearly 10 percent. In order to stabilize money supply, the Fed has been pumping money into the market since September by providing repurchase agreements and buying securities.