United States Money Supply M1

The index reflects the dynamics of the monetary aggregate M1, seasonally adjusted. The M1 aggregate consists of 3 components: 1) currency ; 2) demand deposits with commercial banks; and (3) other liquid deposits consisting of other checking deposits and savings deposits (including money market deposit accounts). Savings deposits were not included in M1 until May 2020. The changes are related to the zeroing of the reserve requirement for savings accounts in March 2020, as well as the abolition of the requirement to restrict the transfers of savings deposits per month in April 2020. As a result, savings deposits have the same liquidity characteristics as checking deposits and are a form of transaction accounts. This change led to an increase in M1 by about $11.2 trillion in May 2020.