The measure of the nation's basic money supply known as M1-A jumped $3.5 billion in the week ended June 18 but still showed a significant rate of decline during the latest month, the Federal Reserve reported yesterday.
In a reversal of the recent trend in interest rates, the report also said the average charge on federal funds rose somewhat during the week, as did other key interest rates. That could indicate that the sharp slide in rates since they reached all-time highs last April has run out of steam.
Meanwhile, the nation's major banks reported a $895 million increase in commercial and industrial loans following a revised gain of $32 million the previous week.
The Fed said M1-A -- the total of checking accounts and cash in circulation -- was a seasonally adjusted $372.8 billion in the latest statistical week against $369.3 billion the previous week. A broader measure of money known as M1-B also rose to $392.5 billion from $389.1 billion, a gain of $3.4 billion.
The increases did not offset the declining trend in the money supply measures. M1-A has declined by an average rate of 3.6 percent in the latest four weeks compared with 13 weeks ago and M1-B showed a 2.1 percent decline in the same period.