Currency Component of M1
CURRSL • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
2,300.10
Year-over-Year Change
1.91%
Date Range
1/1/1947 - 6/1/2025
Summary
The Currency Component of M1 tracks the total amount of physical currency in circulation outside of bank vaults and Federal Reserve banks. This metric provides critical insight into cash holdings and liquidity in the U.S. economy.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This economic indicator represents the physical cash component within the narrowest definition of the money supply (M1), including currency held by the public. Economists analyze this trend to understand cash circulation, consumer behavior, and potential monetary policy implications.
Methodology
The Federal Reserve calculates this metric by measuring the total currency in circulation minus the currency held in bank vaults and Federal Reserve banks.
Historical Context
Policymakers and financial analysts use this data to assess economic liquidity, potential inflationary pressures, and changes in consumer cash preferences.
Key Facts
- Represents physical currency actively circulating in the economy
- Part of the M1 money supply measurement
- Reflects consumer cash preferences and economic activity levels
FAQs
Q: What does the Currency Component of M1 measure?
A: It measures the total amount of physical currency in circulation outside of bank vaults and Federal Reserve banks. This includes coins and paper currency held by the public.
Q: Why is this economic indicator important?
A: It provides insights into cash circulation, consumer behavior, and potential monetary policy trends. Changes in this metric can signal shifts in economic activity and consumer confidence.
Q: How is the Currency Component of M1 calculated?
A: The Federal Reserve calculates it by measuring total currency in circulation and subtracting currency held in bank vaults and Federal Reserve banks.
Q: How do economists use this data?
A: Economists analyze this trend to understand liquidity, potential inflationary pressures, and changes in consumer cash preferences across different economic conditions.
Q: How frequently is this data updated?
A: The Currency Component of M1 is typically updated weekly by the Federal Reserve, providing near-real-time insights into cash circulation.
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Citation
U.S. Federal Reserve, Currency Component of M1 [CURRSL], retrieved from FRED.
Last Checked: 8/1/2025