U.S. Fed's M2 money stock rises last week
0 Comment(s)
Print
E-mail Xinhua, December 6, 2019
WASHINGTON, Dec. 5 (Xinhua) -- Data released by the U.S. Federal Reserve (Fed) on Thursday showed that its M2 money stock increased for the week ending Nov. 25.
M2, the broad money supply, rose to 15.3640 trillion U.S. dollars from the previous week's 15.3255 trillion dollars, while M1, the narrow money supply, also increased from 3.9343 trillion dollars to 3.9737 trillion dollars.
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.
After the third interest rate cut, the U.S. financial market bets the Fed would most likely hold its interest rate steady before the year of 2019 ends.
According to the Chicago Mercantile Exchange Group's FedWatch tool, the probability that the Fed holds its rate steady in December is over 97 percent. Enditem
Go to Forum >>0 Comment(s)