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U.S. Fed's M2 money stock rises last week
Last Updated: 2020-01-31 12:59 | Xinhua
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Data released by the U.S. Federal Reserve (Fed) on Thursday showed that its M2 money stock increased for the week ending Jan. 20.

M2, the broad money supply, rose to 15.4599 trillion U.S. dollars from the previous week's 15.3976 trillion dollars, while M1, the narrow money supply, increased from 3.9516 trillion dollars to 3.9816 trillion dollars in the same period.

M1 is commonly known as a measure of money supply, which includes cash and checking deposits, while 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.

In September 2019, the U.S. money market saw a quick surge of money demand, which sent the interest rates to nearly 10 percent. Since then, in order to stabilize money supply, the Fed had been pumping money into the market by providing repurchase agreements and buying securities.

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