The Fed Says "Money Doesn't Affect Inflation" Others Say "It's The Money Stupid"

The Fed stopped updating both M1 and M2 weekly reports. What's going on?

The Definition of Monthly

When the Fed stopped weekly reporting of money supply numbers I told a friend "they still report monthly".

Today I went to pull the latest numbers and I see we need a new definition of monthly. 

Here is the new schedule of Money Stock Measures

"These data are released on the fourth Tuesday of every month, generally at 1:00 p.m. Publication may be shifted to the next business day when the regular publication date falls on a federal holiday."

Two Month Lag

Today is April 25. The latest data is nearly two months old. 

We will not see March data until April 27. 

Thus, the Fed reports "monthly" data of numbers that it actually knows instantaneously, with a 1 to 2-month lag. 

Changing Definitions

In addition to changing the frequency of reporting, the Fed changed the Definition of M1

Seasonally adjusted M1 is constructed by summing currency, demand deposits, and OCDs (before May 2020) or other liquid deposits (beginning May 2020), each seasonally adjusted separately.

OCDs are Other Checkable Deposits. Other liquid deposits include OCDs as well as money market deposit accounts.

What's the Fed Hiding?

Steve Hanke, Professor of Applied Economics at Johns Hopkins University discusses the setup. 

Disclaimer: The content on Mish's Global Economic Trend Analysis site is provided as general information only and should not be taken as investment advice. All site content, including ...

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