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| Thought I'd post this note as it affects the conversation about M2 below. In 2020 the Fed governors changed the details of what is included in M1 to include savings accounts. These were previously in the M2 money supply calculations. Reason stated is the rule changes in 2020 made them more liquid and easily accessed. So M1 includes part of what used to be M2 as of April 24, 2020. You'll notice M1 takes a steeper dive. Not sure of all the reasons, but guess is people using up a lot of savings.
Art
https://fredblog.stlouisfed.org/2021/05/savings-are-now-more-liquid-...
Edited by Art Swannack 11/8/2023 07:10
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M2 vs M1 Money supply
