M1: Latest Reading, Historical Chart & Investor Guide

Indicator Snapshot

What M1 Measures

M1 Money Stock measures the most liquid part of the money supply, currency plus checkable and savings deposits. The indicator is published by Board of Governors of the Federal Reserve System on a monthly basis and is one of the primary datasets used by investors and economists to monitor this area of the economy.

The Federal Reserve's narrow measure of the U.S. money stock, in billions of dollars and seasonally adjusted. It includes currency, demand deposits and other checkable deposits, and, since a May 2020 definitional change, savings deposits.

Why Investors Watch M1

M1 captures the most liquid money available for spending, and its changes reflect deposit flows, banking conditions and policy transmission. The 2020 reclassification and surge in balances make comparisons with earlier decades difficult, so definitions matter when reading the series.

The indicator's impact on financial markets depends on multiple factors: whether the reading was expected, the current economic regime, central bank policy stance, and investor positioning. A single data point is rarely sufficient to draw firm conclusions.

How M1 Is Calculated

The Federal Reserve compiles it for the H.6 release from reports filed by depository institutions and from Reserve Bank data, adding currency held by the public to the relevant deposit categories. Seasonal adjustment is applied and figures are revised as new reports and benchmarks arrive. Monthly figures are averages of daily data.

The official methodology documentation from Board of Governors of the Federal Reserve System describes the full calculation process including sample design, weighting and revision procedures.

Reference: Board of Governors of the Federal Reserve System: M1 data and methodology

Release Schedule and Revisions

M1 is typically released monthly by Board of Governors of the Federal Reserve System. Release dates are announced in advance through the official release calendar. Investors should monitor both the scheduled release dates and any unscheduled revisions.

Economic data is frequently revised as additional information becomes available. Initial releases may be revised materially in subsequent publications. Tracking revision patterns alongside absolute levels can provide additional insight into data quality and economic momentum.

How to Interpret M1 Changes

When analyzing M1 data, investors should consider multiple dimensions simultaneously:

• Rising M1 means more money is held in the most liquid forms, such as currency and checkable deposits. Falling M1 means those balances are shrinking, often when rates rise and people shift to other assets.
• Year-over-year growth is more informative than the monthly level. Compare it with nominal GDP growth, keeping in mind the link from money growth to inflation has been unstable.
• The May 2020 definition change, which added savings deposits, makes comparisons with figures from before 2020 and with older research misleading.

Market Impact of M1

M1 can influence multiple asset classes depending on its implications for economic growth, inflation, and monetary policy:

• Equities: Changes in M1 can affect earnings expectations, discount rates and sector rotation preferences.
• Fixed income: The indicator may influence Treasury yields and credit spreads depending on its monetary policy implications.
• Currency markets: Divergence in M1 across economies can affect relative currency valuations.
• Commodities: Economic activity indicators can affect commodity demand expectations and prices.

Historical Context

M1 Money Stock has a long history that provides context for interpreting current readings. Key reference points include major economic cycles, recessions, recovery periods and policy regime changes. Historical comparison helps investors avoid placing excessive weight on any single data point outside its longer-run context.

Investors should be aware that methodology changes over time can affect comparability across long historical periods. The official Board of Governors of the Federal Reserve System documentation will note any significant definitional or methodological changes.

Limitations of M1

Like all economic indicators, M1 has limitations that investors should understand before drawing conclusions:

• Data are revised with new bank reports and benchmarks, and monthly figures are averages of daily values, so month-to-month changes can be altered later.
• The relationship between M1 and spending or inflation has been unreliable for decades, and shifts between deposit types can move it without any change in economic activity.
• No single indicator captures the full complexity of economic conditions, so read this series next to the ones linked below.

Related Economic Indicators

M1 is best interpreted alongside related indicators that provide complementary perspectives on the most liquid part of the money supply, currency plus checkable and savings deposits. Confirming or diverging signals across related indicators help investors form more robust views of the economic environment.

• M2
• Monetary Base
• Bank Deposits
• Reserve Balances

See the Monetary Policy And Rates indicators section and the Macro & Market Regimes hub for broader context and related data.