WASHINGTON, Sept. 12 (Xinhua) -- Data released by the U.S. Federal Reserve (Fed) on Thursday showed that its M2 money stock increased for the week ending Sept. 2.
M2, the broad money supply, rose to 14.9989 trillion U.S. dollars from the previous week's 14.9583 trillion dollars, while M1, the narrow money supply, increased from 3.8241 trillion dollars to 3.8726 trillion dollars.
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, as trade tensions between the United States and China persist and more mixed economic signals indicate slowing domestic growth.
According to the Chicago Mercantile Exchange Group's FedWatch tool, the probability of a 25-basis-point rate cut in Fed's September meeting is still over 90 percent like weeks ago.
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 the elements of M1 as well as savings deposits, money market securities, mutual funds, and other time deposits.
