Broadest Money Supply Measures End Week Mixed
NEW YORK (AP) _ The two broadest measures of the nation's money supply were mixed in the week ended May 16, the Federal Reserve Board reported Thursday.
The Fed said the measure known as M2 rose to a seasonally adjusted $3,590.8 billion from a revised $3,587.9 billion the previous week.
An even broader measure, M3, fell to a seasonally adjusted $4,214.3 billion from a revised $4,214.4 billion.
The narrowest measure of the money supply, M1, rose to a seasonally adjusted $1,143.5 billion from $1,142.5 billion. M1 includes cash in circulation, deposits in checking accounts and non-bank travelers checks.
M2 is M1 plus accounts like savings deposits and money-market mutual funds. M3 is M2 plus less-liquid accounts, such as certificates of deposit in minimum denominations of $100,000.
In judging its monetary policy, the Fed has indicated it is monitoring money supply, the value of the dollar, commodity prices and the difference between short- and long-term interest rates.
So far this year, M2 has grown at an annual rate of 2.03 percent, which is within the Fed's target range of 1 percent to 5 percent. The growth rate in M3 in 1994 has been 0.07 percent, within the Fed's target range of 0. …