WASHINGTON, Nov. 21 (Xinhua) -- Data released by the U.S. Federal Reserve (Fed) on Thursday showed that its M2 money stock increased and its M1 money stock declined for the week ending Nov. 11.
The Federal Reserve headquarters in Washington. (File photo: VCG)
M2, the broad money supply, rose to 15.2960 trillion U.S. dollars from the previous week's 15.2801 trillion dollars, while M1, the narrow money supply, decreased from 3.9814 trillion dollars to 3.9785 trillion dollars in the same period.
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.
The Fed lowered its policy interest rate by 25 basis points on Oct. 30 amid a further slowdown in U.S. economic growth. This was the central bank's third rate cut this year.
Fed officials generally agree that the central bank's current policy stance "likely would remain" as long as the economy stays on track, according to the minutes of the Fed's latest monetary policy meeting released Wednesday.
The U.S. financial market bets the Fed would maintain its interest rate after three rate cuts. According to the Chicago Mercantile Exchange Group's FedWatch tool, the probability that the Fed holds its rate steady is over 94 percent.
