Quote:
Originally Posted by Rainger99
This is a chart showing the increase in M1. I don’t understand its significance but that huge jump as a result of Covid looks bad. Perhaps some people can elaborate.
|
It looks like the jump was a result of including savings account balances in the number and was not only due to COVID relief. The M2 graph might be better for seeing the impact of COVID relief funds.
From a
Federal Reserve Q&A page:
1. What changes to the H.6 statistical release were announced on December 17, 2020?
Posted: 01/28/2021
A. A number of changes to Statistical Release H.6, “Money Stock Measures,” were announced on December 17, 2020. The changes, listed here, account for recent amendments to Regulation D and efforts to streamline and modernize the release.
Recognize savings deposits as a transaction account by combining the H.6 statistical release items “Savings deposits” and “Other checkable deposits” and report the resulting sum, “Other liquid deposits,” as part of the M1 monetary aggregate.
Publish the H.6 statistical release at a monthly rather than weekly frequency and retain only monthly average data on the release itself. Weekly average, nonseasonally adjusted data will continue to be made available in the Board’s Data Download Program (DDP), while weekly average, seasonally adjusted data will no longer be provided.
Provide components of the monetary aggregates at a total industry level as opposed to presenting the breakdown of components by commercial banks and thrift institutions.
Report only data used to construct the monetary aggregates, thereby eliminating the release of data on institutional money funds and memorandum items on U.S. government deposits and deposits due to foreign banks and foreign official institutions.
Make the release available in only one format—HTML.
A template of the H.6 statistical release reflective of the above changes can be found here.
2. When will the Federal Reserve implement the H.6 statistical release changes announced on December 17, 2020?
Posted: 12/17/2020
A. The Federal Reserve will implement the H.6 statistical release changes announced on December 17, 2020, with the first monthly H.6 statistical release to be published on Tuesday, February 23, 2021,
inclusive of retroactive updates to the data back to May 2020.