Federal Reserve H.6 Money Stock Measures
This is the Federal Reserve's monthly update on the amount of money in the U.S. economy. It focuses on measures such as M1 and M2, which include cash, checking deposits and other liquid deposits.
Overview
The H.6 release provides U.S. monetary aggregates and their components, with M1 included inside the broader M2 measure. M1 covers the most liquid forms of money, while M2 adds items such as small-denomination time deposits and retail money market funds. The supplied USD currency and July 28 occurrence align with the Federal Reserve's fourth-Tuesday monthly H.6 release timing.
Why traders watch it
Traders use money-supply trends as background information on liquidity, credit conditions and possible medium-term inflation or growth dynamics.
How to interpret the result
Faster-than-expected growth may suggest easier liquidity conditions. Slower-than-expected growth may suggest tighter liquidity or weaker deposit and credit creation, though the market reaction is often limited.