WORLD US Fed's M2 money stock rises last week

WORLD

US Fed's M2 money stock rises last week

Xinhua

11:35, November 15, 2019

WASHINGTON, Nov. 14 (Xinhua) -- Data released by the US Federal Reserve (Fed) showed Thursday that its M2 money stock increased for the week ending Nov. 4.

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File photo: VCG

M2, the broad money supply, rose to 15.2698 trillion US dollars from the previous week's 15.2448 trillion dollars, while M1, the narrow money supply, increased from 3.9423 trillion dollars to 3.9808 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.

US Federal Reserve lowered its policy interest rate by 25 basis points on Oct. 30 amid a further slowdown in US economic growth. This was the central bank's third rate cut this year.

The US financial market bets the Fed may 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 96 percent.

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