Yep it was an accounting change.
Though the additional wave of stimmy checks plus continued buying of MBS during 2021 was definitely not good for inflation.
According to that source the accounting change is responsible for $11.4 trillion of the change. That means M1 really only went up from $4 trillion to $8.6 trillion in two years from February 2020 to June 2022. So we printed more money in two years of pandemic than in the previous twelve years of quantitative easing. How’s that still not the obvious culprit?
(I know the Fed is not under the direct control of the White House, but the change might've been made by decision-makers at the Fed whose sympathy with Biden overrode their commitment to impartially reporting monetary information to the public.)
"If you put money in a checking account, regulators make banks set aside a cushion as reserves in case they get into trouble. But if you put money into a savings account, regulators tell banks they don’t have to reserve anything. The catch is that it’s only considered a savings account if the consumer is allowed to make no more than six withdrawals per month.
It’s worked that way for years.
But then Covid hit, and regulators realized that having trillions of dollars in savings accounts with limited withdrawals was a burden as 22 million people lost their jobs.
So last April the Fed changed the rules and eliminated the six-withdrawal limit on savings accounts. It wrote:
The interim final rule allows depository institutions immediately to suspend enforcement of the six transfer limit and to allow their customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits at a time when financial events associated with the coronavirus pandemic have made such access more urgent.
But it changed the relationship between M1 and M2.
Savings accounts are measured in M2 and left out of M1. But once the six-withdrawal rule was removed, every savings account suddenly became, in the eyes of regulators and people who make these charts, a checking account.
So M1 exploded higher. Not because the Fed printed a bunch of money, but because trillions of dollars in savings accounts were reclassified as checking accounts."
https://collabfund.com/blog/the-fed-isnt-printing-as-much-mo...
M1 didn't include savings accounts in December 2019 and it does now, that's the majority of M1 diff...
That makes me think your conclusions are based off talking-head points instead of first principles, as when your conclusion hinges on M1 changes, you'd think you'd do a few minutes searching what is M1...