The two broadest measures of the nation's money supply fell in the week ended Nov. 12, the Federal Reserve Board reported Thursday.
The Fed said the measure known as M2 fell to a seasonally adjusted $3,314.8 billion from $3,315.0 billion the previous week.An even broader measure, M3, fell to a seasonally adjusted $4,082.0 billion from $4,084.4 billion.
The narrowest measure of the money supply, M1, fell to a seasonally adjusted $819.6 billion from $822.3 billion.
M1 includes cash in circulation, deposits in checking accounts and non-bank travelers checks. M2 is M1 plus accounts like savings deposits and money-market mutual funds. M3 is M2 plus less-liquid accounts, such as certificates of deposit in minimum denominations of $100,000.
In judging its monetary policy, the Fed has indicated it is monitoring the value of the dollar, commodity prices and the difference between short- and long-term interest rates. It also has shifted its attention from M1 to the two broader money supply measures.
The growth rate in M2 in the past 52 weeks was 4.6 percent, which is within the Fed's target range of 3 percent to 7 percent. The growth rate in M3 over the past year was 1.8 percent, which is within the Fed's target range of 1 percent to 5 percent. The Fed has not set a target for M1 growth since early 1987.
For the latest 13 weeks, M2 averaged $3,317.1 billion, a 3.9 percent seasonally adjusted annual rate of gain from the previous 13 weeks. M3 averaged $4,090.1 billion, up 1.5 percent, while M1 rose 5.4 percent to an average of $820.2 billion.