M2: M2 is a broader measure of money supply that includes all components of M1 plus savings deposits, time deposits (certificates of deposit), and retail money market funds.
Federal Reserve: The Federal Reserve, also known as the central bank of the United States, plays a crucial role in controlling and regulating the money supply.
Monetary Policy: Monetary policy refers to actions taken by the central bank to manage and control the money supply in order to achieve economic goals such as price stability and full employment.