How is M1 controlled by the fed?

The Federal Reserve controls M1, which includes the most liquid forms of money like cash and checking account deposits, primarily through monetary policy tools. It adjusts the federal funds rate, influencing borrowing costs and overall money supply. Additionally, the Fed can engage in open market operations, buying or selling government securities to inject or withdraw liquidity from the banking system. These actions ultimately impact the amount of money banks can lend, thereby affecting M1 levels.