Real M1 Money Stock
M1REAL • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
5,848.50
Year-over-Year Change
1.52%
Date Range
1/1/1959 - 6/1/2025
Summary
Real M1 Money Stock represents the inflation-adjusted supply of the most liquid money in the U.S. economy, tracking the total amount of physical currency, demand deposits, and other highly liquid assets. This metric is crucial for understanding monetary conditions, potential inflationary pressures, and overall economic liquidity.
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 trend reflects the purchasing power of the narrowest definition of the money supply after accounting for inflation. Economists use this indicator to assess monetary policy effectiveness, potential economic stimulus, and changes in consumer and business spending power.
Methodology
The Federal Reserve calculates Real M1 Money Stock by adjusting the nominal M1 money supply using the Consumer Price Index (CPI) to remove the effects of inflation.
Historical Context
Policymakers and central bankers closely monitor this trend to inform monetary policy decisions, assess economic health, and predict potential inflationary or deflationary pressures.
Key Facts
- M1 includes the most liquid forms of money in the economy
- Adjusted for inflation to provide real economic purchasing power
- Critical indicator for understanding monetary conditions
FAQs
Q: What does Real M1 Money Stock measure?
A: It measures the inflation-adjusted supply of the most liquid money in the U.S. economy, including cash, checking accounts, and other immediately accessible funds.
Q: Why is Real M1 important?
A: It helps economists and policymakers understand the actual purchasing power of money and potential economic stimulus or contraction.
Q: How is Real M1 calculated?
A: The nominal M1 money supply is adjusted using the Consumer Price Index (CPI) to remove the effects of inflation.
Q: How do changes in Real M1 impact the economy?
A: Significant changes can indicate potential shifts in monetary policy, inflation expectations, and overall economic conditions.
Q: How often is Real M1 Money Stock updated?
A: The data is typically updated monthly by the Federal Reserve, providing a current view of monetary conditions.
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Citation
U.S. Federal Reserve, Real M1 Money Stock [M1REAL], retrieved from FRED.
Last Checked: 8/1/2025