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Federal Reserve Adding Liquidity

August 18, 2021
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 See the changes the Federal Reserve made in accounting for money supply M1 and M2 to M1SL and M2SL.   Going forward will be interesting charting and FED watch on economic outlook.

The money supply is the total amount of money—cash, coins, and balances in bank accounts—in circulation.

The money supply is commonly defined to be a group of safe assets that households and businesses can use to make payments or to hold as short-term investments. For example, U.S. currency and balances held in checking accounts and savings accounts are included in many measures of the money supply.1

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1 https://www.federalreserve.gov/faqs/money_12845.htm

Data and rates used were indicative of market conditions as of the date shown. Opinions, estimates, forecasts and statements of financial market trends are based on current market conditions and are subject to change without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer, or recommendation to purchase or sell a security. Past performance is not a guarantee of future results.