M1 Adjusted for Retail Sweeps
M1ADJ • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
3,454.40
Year-over-Year Change
6.23%
Date Range
1/1/1967 - 12/1/2013
Summary
M1 Adjusted for Retail Sweeps (M1ADJ) represents a refined measurement of the money supply that accounts for cash management techniques used by financial institutions. This adjusted metric provides a more accurate representation of liquid money in circulation by incorporating retail sweep transactions.
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
The series reflects modifications in how banks transfer funds between checking and savings accounts to optimize reserve requirements. Economists use this adjusted measure to gain a more precise understanding of monetary liquidity and potential inflationary pressures.
Methodology
The Federal Reserve calculates M1ADJ by adjusting traditional M1 money supply figures to account for retail sweep programs that redistribute funds between different account types.
Historical Context
Policymakers and central bank analysts utilize this metric to develop more nuanced monetary policy strategies and assess overall economic liquidity.
Key Facts
- Provides a more accurate representation of circulating money supply
- Accounts for complex cash management techniques in banking
- Helps economists understand true monetary liquidity
FAQs
Q: What makes M1ADJ different from standard M1 money supply?
A: M1ADJ incorporates retail sweep transactions, offering a more precise measurement of liquid money by accounting for banks' cash management strategies.
Q: Why do banks use retail sweep programs?
A: Banks use sweep programs to optimize reserve requirements and manage regulatory compliance more efficiently.
Q: How often is M1ADJ data updated?
A: The Federal Reserve typically updates M1ADJ data on a monthly basis, providing current insights into monetary liquidity.
Q: How do economists use M1ADJ in policy analysis?
A: Economists analyze M1ADJ to understand potential inflationary trends and develop more targeted monetary policy strategies.
Q: Are there limitations to the M1ADJ measurement?
A: While more refined than standard M1, M1ADJ still represents a snapshot of monetary conditions and should be considered alongside other economic indicators.
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Citation
U.S. Federal Reserve, M1 Adjusted for Retail Sweeps [M1ADJ], retrieved from FRED.
Last Checked: 8/1/2025