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

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WASHINGTON, Oct. 10 (Xinhua) -- Data from the U.S. Federal Reserve (Fed) on Thursday showed that its M2 money stock increased for the week ending Sept. 30.

M2, the broad money supply, rose to 15.1414 trillion U.S. dollars from the previous week's 15.0916 trillion dollars, while M1, the narrow money supply, also increased from 3.9004 trillion dollars to 3.9233 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.

"Measures of expectations of the near- and medium-term path for the federal funds rate were particularly sensitive to news about U.S.-China trade tensions, while FOMC communications had only modest effects on market-based measures of policy rate expectations," said the minutes of the Fed's September 17-18 policy meeting.

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 80 percent, while the probability that Fed holds its rate steady is around 20 percent.

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. Enditem

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