bluebooks · September 18, 1972

Bluebook

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1

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Content last modified 6/05/2009.

(CONFIDENTIAL

FR)

September 15, 1972

MONETARY AGGREGATES AND MONEY MARKET CONDITIONS Prepared for the Federal Open Market Committee

By the Staff BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

CONFIDENTIAL (FR)

September 15,

1972

MONETARY AGGREGATES AND

MONEY MARKET CONDITIONS Recent developments (1)

In recent weeks, credit markets have been in a highly sensitive

state, while monetary and reserve aggregates have run ahead of paths indicated at the last Committee meeting.

Since mid-August Treasury bill rates have

risen from 60-80 basis points, and yields on longer-term Treasury and Federal agency issues have moved up as much as 35 basis points.

In other markets,

changes have been more moderate, with increases in short rates ranging up to 38 basis points and in long rates from 10 to 15 basis points. (2)

The sharp rise in Treasury bill rates reflected the cessation

of special demands associated with the Treasury's August refinancing, a shift of foreign central banks from the buy to the sell side of the market, and sales of bills in connection with the Treasury's September deficit, including sales by the Federal Reserve to offset the reserve effect of a sharp decline in the Treasury cash balance at the Fed.

The influence of this large increase

in bill supply was accentuated in late August and early September when the Federal funds rate broke through 5 per cent.

Market expectations turned

bearish, and upward rate adjustments spilled over into non-Treasury markets. (3)

Soon after the last FOMC meeting, RPD growth appeared to be

moving toward the high end of the 5--9 per cent range adopted by the Committee, and the Desk operated to provide reserves more cautiously.

However, because

credit markets proved to be so sensitive to the resulting firmer money market conditions, the Desk felt compelled to supply some reserve cushion even though

-2RPD growth rose above the target range. market unsettlement.

Desk operations helped to calm

The average funds rate dropped to about 4.70 per cent

in the statement week ending September 13, although this partly reflected a sharp drop in bank demand for excess reserves following a bulge in the week of the Labor Day holiday.

Most recently, with security markets more

stable, the Desk has tightened up on supplying reserves with the expectation that the Federal funds rate might move to around 5 per cent, (4)

Reserves available to support private nonbank deposits now

appear to be growing at about a 12 per cent annual rate for the August-September target period.

Roughly 2 percentage points of the difference between 12 per

cent and the 7 per cent mid-point of the target range is attributable to larger average excess reserves at banks than had been assumed in the initial projection.

Most of the enlargement of excess reserves occurred during the

Labor Day statement week, when precautionary member bank borrowing over the holiday period produced average excess reserves for the week totaling $838 million.

About 1/2 percentage point of the difference reflects changes in the

multiplier as a result of shifts in the mix of deposits. (5)

Expansion of M1 and M 2 in August exceeded growth rates thought

to be consistent with policy alternative B in the last Blue Book by 1/2 to 1-1/2 percentage points (after adjusting for a decrease in the July base). In the case of M 1 the annual growth rate for August was 6 per cent, as shown in

attached Table 2.

However, data for early September suggest that growth of

M 1 will be rapid from August to September,

and is thus likely to be stronger

in the third quarter than thought at the last FOMC meeting. (6)

The following table compares seasonally adjusted annual rates

of change in major financial aggregates for recent periods with the year ending in August and with the preceding two calendar years.

Most Recent two

Calendar Years Dec' 7l over

Past Year Aug'72 over

Past 6 Months Aug'72 over

Past 2 Months Aug '72 over

Past Month Aug '72 over

Dec'69

Aug'71

Feb'72

June'72

July'72

Total Reserves

+ 6.9

+ 8.6

+11.3

+ 6.1

+ 9.3

Nonborrowed Reserves

+ 9.0

+10.2

+ 9.2

+ 1.1

+ 3.8

+ 8.3

+ 7.2

+9.1

+ 8.4

+ 8.0

+6.0

+ 5.5

+ 8.1

+10.1

+ 6.0

+13.0

+ 9.6

+ 9.6

+ 9.7

+8.0

+11.0

+12.0

+12.0

+12.1

+10.4

+ 9.3

+10.9

+12.3

+10.8

+ 9.3

+12.2

+11.7

+14.3

+18.2

+ 8.5

+ 5.5

+ 2.2

+ 1.2

Reserves available to

support private nonbank deposits

Concepts of Money M1 (currency plus demand deposits) 1/

M 2 (M1 plus time deposits at commercial banks other than large CD's)

M3 (M plus deposits at thrift institutions) Bank Credit Total member bank deposits (Bank credit proxy adj.)

Loans and investments of commercial banks2/+10.2 Short-term market paper (Actual $ change in billions) Large CD's

+22.4

Nonbank commercial 3/ 3/ 3/ + 3/ paper + 0.9+ 0.6+ o.8+ 0.3 + 3.8 / Other than interbank and U. S. Government. 2/ Based on month-end figures. Includes loans sold to affiliates and branches. 3/ Changes are based on July averages. NOTE: All items are based on averages of daily figures, except for data on total loans and investment of commercial banks, commercial paper, and thrift institutions--which are either end-of-month of last Wednesday of month figures.

Prospective developments (7)

The ensuing paragraphs present various trade-offs between

interest rates and growth in monetary and reserve aggregates.

At one limit,

(alternative A), we have shown an expansion in monetary aggregates that involves essentially no change between now and the first quarter of 1973 in money market conditions from those recently prevailing.

At the other limit

(alternative D), we have shown an M 1 path under which growth is curtailed to a 6 per cent annual rate by the first quarter of next year; this path implies a full percentage point rise in the Federal fund rate between now

and the next meeting.

There are a number of possibilities in between.

Alternative B and C are two, and they involve both a more gradual slowing in the monetary aggregate and a more gradual tightening of money market conditions. (8)

For each of the four alternatives noted above, the following

table shows RPD growth rates and associated money market conditions that might be used as operating targets between now and the next meeting of the Committee.

(The tables in paragraph (11) and on pp.8-9 give longer-run paths

for monetary aggregates.) A single maximum likelihood estimate is shown for the Federal funds rate. reserves,

At any given RPD target,

the strength of demand for

as well as technical market factors, will of course generate

fluctuation around the funds rate shown.

The Committee presumably will wish

to specify a range of fluctuation to be tolerated by the Desk.

-5Alt. A

Alt. B

Alt. C

Alt. D

18.7 8.9 13.9

18.7 8.4 13.6

18.6 8.1 13.4

18.3 6.3 12.5

15.9 9.8 12.9

15.7 7.8 11.8

15.1 4.2 9.7

14.5 -2.3 6.1

4-7/8

5-1/8

5-3/8

5-7/8

300-500

350-550

425-625

600-800

Growth in RPD (SAAR)September October Sept.-Oct.

Growth in nonborrowed RPD (SAAR)/ September October Sept.-Oct. Federal funds rate Member bank borrowing 1/

Annual rates of growth calculated after adjusting required reserves component of the RPD series to eliminate the discontinuity from the change in reserve requirements resulting from the effectuation of Regulations D and J.

(9)

The changes in Regulations D and J, effective September 21,

affect the multiplier relationship between reserves and deposits, and in the transition period immediately ahead makes that relationship more uncertain than usual.

For one thing, the ability of banks to waive

penalties on reserve deficiencies (up to $433 million initially) will affect excess reserves to an unknown degree.

To the extent that these

potential waivers are not used (either to run deficiencies or to reduce normal excess reserves), excess reserves will rise. 1/

We have

assumed that 50 per cent is used in the first week and that use increases to 80 per cent by the end of four weeks.

For another thing,

the effect on required reserves resulting from Regulations D and J is particularly complicated.

Though Regulations D and J together will

lower required reserves for a given level of gross deposits, banks as a 1/ In our figures excess reserves, RPD, total reserves, and nonborrowed reserves have been adjusted to include the $433 million of potential waivers, since these are in effect reserves that can be utilized by the banking system.

-6whole will have greater required reserves from the effect of Regulation J alone, because faster reserve crediting will reduce cash items and hence increase required reserves. 1 /

But we cannot be very certain at this point

as to the distribution by individual banks of the Regulation J effect on reserves and, therefore, of the effect on the reserve-deposit multiplier-particularly given a totally new reserve requirement structure to evaluate. (10)

Money market conditions will also be affected by other

transitional uncertainties affecting the behavior of banks themselves.

The

long lead time between announcement and effectuation of the new regulations and the intensive educational work undertaken by Federal Reserve officials would suggest a relatively smooth transition. may hold somewhat more excess

But it is likely that banks

reserves than normal for a while in

adapting to the faster inflow and outflow of reserve funds under Regulation J and also in not fully adjusting immediately to the reduction in requirements under Regulation D.

There may also be money market churning, and perhaps

more volatility in member bank borrowings, if inflows and outflows of reserve funds differ from bank expectations in the initial stages of the new regulations. (11)

Paths for the monetary aggregates consistent with the initial

RPD and money market conditions shown in paragraph (8) are indexed below by rates of change (SAAR) for M1.

Detailed figures for all the usual

monetary aggregates, including various measures of reserves, are shown in the tables on pages 8 and 9.

The disappearance of cash items on banks' books (and also of float 1/ on Fed Books) as a result of new Regulation J will also result in an upward level adjustment in measured money supply. This adjustment will be made at the time of our annual revision. The adjustment will not affect growth rates.

-7Alt.

11 8

September October

3rd Q.

10-1/2

4th Q.

8

1st Q.

7-1/2

(12)

A

Alt.

B

Alt.

C

Alt.

D

11 7

11 7-3/4

11 7-1/2

10-1/2

10-1/2

7-3/4

7-1/2

7

6-3/4

6-1/2

6

10-1/2

Under alternative A, the Committee would be aiming at a

constellation of reserve and money market conditions--essentially involving no change through the first quarter of '73 in money market conditions from those prevailing on average in the past few weeks--that would reduce M1 growth only modestly from the rapid 10-1/2 per cent rate expected in the third quarter.

Some slowing in M 1 demand in the fourth and first quarters

would be in prospect from the lagged effects of the recent rise in shortBut by the end of the first quarter, operations under alternative A

term rates.

would probably have set in train forces leading to quite rapid M1

growth as

1973 progresses, assuming the rate of expansion in nominal GNP remains strong. (13)

The monetary aggregates under alternative B and C are con-

sistent with progressive firming in reserve and money market conditions over the months ahead; however, alternative B moves in this direction more gradually than alternative C.

The first stage of firming, between now and

the next meeting of the Committee, would probably result in a Federal funds rate moving up to a range around 5-1/8 per cent under B and around 5-3/8 per cent under C.

But the funds rate would probably need to rise in added stages

Alternative Monthly and Quarterly Patterns for Key Monetary Aggregates M1

Alt. A

Alt. B

M2

Alt. C

Alt. D

Alt. A

Alt. B

Alt. C

Alt..D

(Billions of Dollars) 1972 Sept.

242.8

242.8

242.8

242.8

502.9

502.9

502.9

502.9

Oct. Nov. Dec.

244.4 246.1 247.8

244.35 246.0 247.5

244.3 245.8 247.4

244.2 245.5 247.1

605.4 510.0 513.4

506.35 509.7 512.8

506.3 509.4 512.6

505.8 508.4 511.2

11.0

11.0

Per Cent Annual Rates of Growth Sept.

11.0

Oct. Nov. Dec.

8.0 8.5 8.5

7.75 8.0 7.5

10.5 8.0

10.5 7.75

3rd Q. 4th Q.

11.0

11.0

11.0

7.5 7.5 7.5

7.0 6.5 8.0

8.5 8.5 8.0

10.5 7.5

10.5 7.0

10.0 8.5

11.0

11.0 8.0 8.0 7.5 10.0 8.0

Adjusted Credit Proxy

Alt. A

Alt. B

Alt. C

Alt. D

(Billions of Dollars) 1972 Sept.

392.3

392.3

392.3

392.3

Oct. Nov. Dec.

397.7 401.6 403.9

397.65 401.4 403.5

397.6 401.2 403.3

397,3 400.5 402.5

Per Cent Annual Rates of Growth 9.0

9.0

9.0

9.0

Dec.

16.5 12.0 7.0

16.5 11.5 6.5

16.0 11.0 6.5

15.5 9.5 6.0

3rd Q. 4th Q.

10.5 12.0

10.5 11.5

10.5 11.0

10.5 10.5

Sept. Oct. Nov.

8.0 7.5 7.5

7.0 6.0 6.5

10.0 7.5

10.0 6.5

Alternative Monthly and Quarterly Patterns for Reserve Aggregates RPjl/

Total Reserves 1/ B

Alt.

Alt.

Alt. A Alt. (Millions of Dollars)

C

D

Alt. A

Alt.

Sept.

32,568

32,568

32,566

32,558

Oct. Nov. Dec.

31,047 31,331 31,590

31,035 31,295 31,529

31,025 31,259 31,493

30,980 31,211 31,423

B

Alt. C

Alt.

30,230

30,230

30,227

30,219

28,534 28,867 29,079

28,522 28,830 29,008

28,512 28,795 28,983

28,467 28,748 28,914

18.6

18.3

D

1972

(Per Cent Rate of Growth) Sept.

1.9

Oct. Nov. Dec.

26.5 8.6 9.9

3rd Q. 4th Q.

4.7 14.9

1.8

1.5

18.7

18.7

26.1 7.7 9.0

25.1 6.8 9.0

24.5 6.7 8.2

8.9 11.2 8.8

8.4 10.3 7.8

4.7 14. 1

4.7 13.7

4.6 13.0

11.9 9.5

11.9 8.7

1.9

8.1 9.3

7.8 11.9 8.3

Nonborrowed RPD 1/

Sept. Oct. Nov. Dec.

Alt. A

Alt.

B

29,788 28,112 28,435 28,657

29,788 28,056 28,348 28,546

Alt.

C

29,766 27,947 28,227 28,426

Alt.

29,751 27,768 28,002 28,182

Per Cent Rate of Growth Sept. Oct. Nov. Dec. 3rd Q. 4th Q.

15.9 9.8 11.0 9.4

15.7 7.8 9.8 8.4

15.1 4.2 9.3

7.2 8.5

7.0 7.1

Footnotes and Note appear on the following page.

8.5

D

14.5 -2.3 7.6 7.7 6.8 4.1

6.7 9.3 6.9 11.8 7.5

-9a-

The dollar level of the reserve series includes $433 million of potential 1/ reserve deficiencies on which penalties can be waived for a transition period in connection with bank adaptations to revised Regulation J. 2/ For ease of analysis, annual rates of growth have been calculated after adjusting the required reserve component of the reserve series to eliminate the discontinuity from the change in reserve requirements resulting from the effectuation of Regulations D and J. The amount of adjustment for the RPD series is $815 million in September, $2,740 million in October, and $2,700 million in November. NOTE: The level of the reserve series in September and ensuing months is not comparable with previously projected figures for those months since they are now projected to reflect the impact of Regulations J and D. Rates of growth are also not comparable because we have now included the estimated impact on excess reserves of potential waivers of deficiency in connection with Regulation J. Old figures are still shown in the appendix tables.

-10to around 5-3/4 and 6 per cent, respectively, under the two alternatives by mid-December, as RPD growth was further restrained to reduce M1 expansion to the annual rates shown for the first quarter in the table in paragraph (11). (14)

Alternative D sets a path which is

upward move of interest rates.

a prompt

expected to result in

The funds rate, for example, would probably

rise to around 6 per cent within a month and then level off.

Such a rise

in interest rates would permit a reduction in the growth of M1 to about a 6 per cent annual rate by the first quarter of next year. (15)

The behavior of monetary aggregates other than M 1 is shown,

as noted earlier, in the tables on pages 8-9. these aggregates are:

Key developments affecting

(a) a slowing in the growth of time deposits other

than large CD's in reflection of recent rises in market interest rates and, particularly in the cases of alternatives C and D, of further rises; and (b) continued sizable demand by banks for large CD funds associated with sustained strong loan demand. (16)

With respect to interest rate developments in the period

before the next Committee meeting, any further increases may be quite modest if recently prevailing money market conditions were continued.

Short-term

rates have adjusted to a more normal relationship to the recently prevailing funds rate, and the prospective volume of new security offerings in corporate

and municipal bond markets appears moderate.

However, bill rates may be

affected by the forthcoming monthly Treasury auction raising $600 million of new cash, by anticipations of cash borrowings in October and November, and also by increased foreign central bank selling of bills if a sizable reflow of dollars should develop.

-11(17)

Recent investor hesitancy and a still relatively large

overhang of dealer bill positions suggest that credit market conditions remain quite sensitive to indications of change in monetary policy.

A

rise in the Federal funds rate to somewhat above 5 per cent, as contemplated in alternatives B or C, would very likely lead to further upward adjustments in short-term rates, with the 3-month bill rate moving up in a 4-3/4--5-1/2 per cent range.

Short rate increases would be greater under alternative C

than under B, and the probability of reviving expectations of a discount rate increase would also be commensurately greater.

Long-term market rates

would probably rise somewhat, particularly if a rising funds rate were viewed as the beginning of a more sustained tightening in monetary policy. Upward market rate adjustments would, of course, be quite sharp under alternative D.

-12Prooosed directives (18)

Presented below are four alternative formulations for the

operational paragraph of the directive, which might be taken to correspond to the similarly lettered policy alternatives discussed in the preceding section: Alternative A "To implement this policy, while taking account of developments in[DEL: capital] CREDIT markets, [DEL: and] international developments, AND THE EFFECTS OF BANK REGULATORY CHANGES, the Committee seeks to achieve bank reserve and money market conditions that will support [DEL: moderate] SOME MODERATION OF growth in

monetary aggregates over the months

ahead." Alternative B "To implement this policy, while taking account of developments in [DEL: capital] CREDIT markets, [DEL: and] international developments, AND THE EFFECTS OF BANK REGULATORY CHANGES,

the Committee seeks to achieve

bank reserve and money market conditions

that will support SOMEWHAT

MORE moderate gr wth in monetary aggregates over the months ahead." Alternative C "To implement this policy, while taking account of developments and] international developments, AND THE capital] CREDIT markets, [DEL: in [DEL: EFFECTS OF BANK REGULATORY CHANGES,

the Committee seeks to achieve

bank reserve and money market conditions that will support MORE moderate growth in monetary aggregates over the months ahead."

-13Alternative D "To implement this policy, while taking account of developments in[DEL: capital] CREDIT markets, [DEL: and] international developments, AND THE EFFECTS OF BANK REGULATORY CHANGES,

the Committee seeks to achieve

bank reserve and money market conditions that will support moderate growth in (19) account is

monetary aggregates over the months ahead." In all four alternatives it is proposed to indicate that

to be taken of "credit" rather than "capital" market developments

in order more explicitly to encompass short- as well as long-term interest rates in the instruction.

This is proposed on the assumption that the

Committee would want the Manager to modify his operations in the event some unusual combination of factors subjects bill to undesired upward pressure. in

and other interest rates

In alternative D (and also to lesser extents

C and B) the same language could be interpreted as calling for adapting

Desk operations as necessary to facilitate orderly market adjustments to the higher interest rate levels foreseen. (20)

The Committee has often interpreted an instruction to take

account of "international developments" as calling for the use of operating techniques designed to minimize downward pressures on short-term interest rates.

At times, however, some members have favored retaining such an

instruction for other reasons, such as to avoid the inference that might be drawn from its deletion that the Committee had decided to give less weight to international considerations. this time,

it

If the reference is retained at

presumably would be for the latter type of reason, particularly

with the forthcoming IMF meeting in view.

-14(21)

It is proposed in all four alternatives to add "the effects

of bank regulatory changes" to the list of considerations to be taken into account, in view of the uncertainties surrounding bank response to the announced revisions of Regulations D and J.

STRICTLY CONFIDENTIAL (FR)

9/15/72 CHART 1

RESERVES AVAILABLE TO SUPPORT PRIVATE NONBANK DEPOSITS

9% growth for Aug Sept

5I

S I

J

I

I I

I

I I

I I

i

I i

.

.....

I

L

D

M 1971

I

I

i

I I .

1 I

I M

M 1972

J

J 1972

I

I A

S

CHART 2

STRICTLY CONFIDENTIAL(FR)

9/15/72

MONETARY AGGREGATES NARROW MONEY SUPPLY M1

BILLIONS OF DOLLARS

//

- 240

(9/13/72)

240

235

j

I

j

.,1

BROADER MONEY SUPPLY M2

I I 1971

1972

A

I M

I J J 1972

A

S

CHART 3

STRICTLY CONFIDENTIAL(FR)

9/15/72

MONETARY AGGREGATES ADJUSTED CREDIT PROXY

BILLIONS OF DOLLARS

-400 S400 (9/13/72)

h/gT

I

I

I

I

I

-I

TOTAL RESERVES

36

34

/

32

(9/13/72)

30

i 1971

1972

A

M

J

M

J

I I I J

1972

A

S

CHART 4

MONEY MARKET CONDITIONS AND INTEREST RATES MONEY MARKET CONDITIONS

INTEREST RATES Short-term

PER CENT

-

WEEKLY AVERAGES

PER CENT

INTEREST RATES Long-term

WEEKLY AVERAGES

7

-9

-9

-

NEW CORPORATE Aaa WEDNESDAY

FHA MORTGAGES FNMA MONDAY AUCTION

EURO-DOLLARS F R DISCOUNT RATE

PER CENT

WEEKLY

3 MONTH

FEDERAL FUNDS RATE

7

7

5 -

-3

-5

5

MUNICIPAL Aaa MUNICIPAL Aaa WEDNESDAY

BILLIONS OF DOLLARS

RESERVES

-A BOIOWEL) BORROWED

/

-

!/

-

20 YEAR AVERAGES

/

PRIME COMMERCIAL PAPER

v

-

GOVERNMENT ODS GOVERNMENT BONDS

TREASURY

BILLS

'-2

4 6 MONTH

NET RORROWED

1 1 111 1 1971

11

1

11

11 1972

1 1 2

1'1

1 I 1971

1 1

1

L971 9l 11 1972

1 1.1 1971

1.

l

l lL97 1 11 1972

-

STRICTLY CONFIDENTIAL (FR)

Table 1 Bank Reserves

Reserves Available for Private Nonbank Deposits Seasonally Adjusted Not Seasonally Adjusted Target and Actual Target and Actual and Associated Associated and Patterns Projected Patterns Projected (1) (2) (3) (4)

Period

1972-- Mar. Apr. May June July Aug. Sept.

30,365 30,467 30,618-30,820-

29,625 29,798 29,951 30,148 30,365 30,568 (30,966)

30,167 30,166 30,418-30,619'

29,347 29,890 29,775 29,788 30,166 30,267 (30,678)

September 15,

1972

Required Reserves Seasonally Adjusted Time U.S. Gov't. and and Nonborrowed Private Reserves Demand Nondeposits Interbank (8) (9) (6) (7)

Aggregate Reserves

Total Reserves (5) 32,032 32,643 32,830 33,059 33,138 33,395 (33,400)

31,931 32,525 32,728 32,967 32,924 33,029' (32,941)

20,669 20,859 20,874 20,874 21,052 21,131 :21,361)

8,748 8,762 8,934 9,059 9,136 9,249 (9,393)

2,407 2,845 2,879 2,911 2,774 2,827 (2,434)

7.2 2.2 10.1 12.8

6.0 6.8 11.0 13.0

3.3 0.5 6.8 4.0

8.8 16.4 18.0 14.2

15.8 22.9 6.9 8.4 2.9 9.3 (--) (4.5)

13.3 22.2 7.5 8.8 -1.6 3.8 (-3.0) (0.5)

13,5 11.0 0.9 10.2 4.5 (13.0) (9.0)

13.2 1.9 23.6 16.8 10.2 14.8 (18.5) (17.0)

32,529 32,638 32,995 32,783 33,033

32,415 32,555 32,960 32,723 32,819

20,866 20,914 20,884 20,717 20,987

8,840 8,891 8,931 8,961 8,992

2,742 2,647 2,985 2,963 2,978

29,589 29,606 29,947 29,906

33,217 32,953 33,213 32,761

33,163 32,864 33,158 32,649

20,766 20,912 20,975 20,803

9,024 9,052 9,058 9,092

3,030 2,899 2,890 2,818

30,155 29,883 30,239 30,238

33,383 32,671 33,301 33,124

33,119 32,462 33,143 32,968

21,020 20,854 20,983 21,273

9,092 9,119 9,156 9,137

2,934 2,616 2,944 2,649

Annual Rates of Change 2.ar£t er : 1971--3rd Qtr. 4th Qtr. 1972--lst Qtr. 2nd Qtr. 1972--Mar. Apr. May June July Aug. Sept. Aug.-Sept. Weekly: 1972--May

June

3 10 17 24 31 7 14 21 28

1/

!;!.... !.!.....

.I. ::..:::: .!.!.

4.0 10.0. 5.0-9.0

4.3 4.8 ;::::::::::;:::::::; :::::::::::::^::::: ............... ::::::

7.1

/

15.6 7.0 6.2 7.9 8.6 8.0 (15.5) (12.0)

......... :..... :......... :...:.........:............

..................... ::: 30,263 30,004 .......................... : 29,908 29,373 .................... :::: 29,605 .................... ::::

29,787 29,990 30,011 :.:::::::::: .........29,820 30,055 ......... :::.........::........ 30,187

July

5 12 19 26

30,054 30,322 ::::: 29,943 ........ ............ :::: ........... :::::: 30,449 .......... : :: ..::::::: 30,055 ... :::........ :::....... :: 30,357 30,475

Au,.

2 9 16 23 30

30,570 30,434 30,563 30,278 30,875

30,373 30,075 30,421 30, 027 30,421

33,340 33,368 33,481 33,090 33,597

33,014 33,124 33,125 32,750 33,096

21,149 21,118 21,066 21,048 21,264

9,176 9,217 9,244 9,253 9,293

2,770 2,934 2,917 2,812 2,722

31,436 30,476

30,908 30,122

33,816 32,802

32,978 32,655

21,285 21,281

9,331 9,386

2,380 2,326

Sept. 6 13 p

NOTE:

..

- 1..... Data shown in parentheses are current projections.

U

--

__

__________________

_

- -

The range is centered on the 7.0 per cent rate of growth in these reserves from Aug. to Sept. thought to be consistent with growth in monetary aggregates as shown under Alternative 8 in the Bluebook of August 11, 1972.

---

Annual Growth Rates consistent with alternative B 1/

1

M. z

Aug. 3.5 7.0

Sept. 7.5 8.0

LI 8.7 9.0

4.7

10.5

9.4

Credit Proxy (Adj.)

Narrow Money Supply (M 1 )

Period

Broad Money Supply (M2 )

Adjusted Credit Proxy

(2) (3) (1) Monthly Pattern ii n Billions of Dollars 483.0 486.1 490.4 495.0 498.3 (502.9)

235.0 235.5 236.6 239.4 240.g (242.8)

1972--Apr. May June July Aug. Sept.

STRICTLY CONFIDENTIAL (FR)

Table 2 Monetary Aggregates (Actual and current projections, seasonally adjusted)

376.3 380.9 382.4 386.3 389.3 (392.3)

U.S. Govt. Deposits

Total Time and Savings

(4)

(5)

7.4 7.4 5.3 5.3 4.6 (4.3)

September 15, 1972

Time deposits other than CD's

Nondeposit Sources of Funds

Negotiable CD's

(6)

282.8 287.0 290.9 293.7 297. 1 (300.5)

248.1 250.7 253.8 255.6 257.8 (260.2)

15.9

14.7

34.7 36.3 37.1 38.1 39.3 (40.4)

3.5 3.7 3.8 3.9 4.2 (4.0)

Annual Percentage Rates of Change--Quarterly and Monthly 8.0

1.1

1971--4th Qtr.

9.7

1972--1st Otr. 2nd Qtr. 3rd Qtr.

9.3 5.3 (10.5)

13.3 8.6 (10.0)

11.3 11.1 (10.5)

14.8 15.7 (13.0)

17.1 11.8 (10.0)

1972--Apr. May June July Aug. Sept.

7.7 2.6 5.6 14.2 6.0 (11.0)

7.2 7.7 10.6 11.3 8.0 (11.0)

13.5 14.7 4.7 12.2

12.4 17.8 16.3 11.6

7.8 12.6 14.8 8.5

13.9 (13.5)

10.3 (11.0)

9.3 (9.0)

::::::::::::::::::::::: I::::::::::::::::::::::::

i:::::::::::::::::::::::

tiiiiiiiiiiiiiiiiiiiilll

Weekly Pattern in Billions of Dollars 3 10 17 24 31

234.7 234.5 236.8 235.0 236.3

484.2 484.5 487.4 486.3 488.4

379.1 378.8 381.4 381.4 382.2

285.2 286.0 286.9 287.9 288.7

249.5 250.0 250.7 251.3 252.1

35.6 36.0 36.2 36.6 36.7

3.6 3.6 3.8 3.9 3.7

June

7 14 21 28

236.6 236.6 237.3 236.1

489.3 490.0 491.5 490.7

383.2 381.6 383.7 381.3

289.5 290.7 291.2 291.9

252.7 253.4 254.2 254.6

36.8 37.3 37.0 37.3

3.7 3.5 3.8 4.0

July

5 12 19 26

238.0 240.9 239.7 239.5

493.7 495.8 495.0 495.4

384.4 384.4 386.6 388.2

293.1 292.8 293.5 294.4

255.7 255.0 255.3 255.9

37.4 37.9 38.2 38.5

3.8 3.5 4.1 4.0

Aug.

2 9 16 23 30 p

239.7 240.1 240.9 240.5 241.2

496. 2 497.2 498.6 498.4 499.8

387.5 388.2 389.8 388.7 390.1

295.1 295.6 296.5 297.6 299.0

256.5 257.0 257.7 257.9 258.6

38.6 38.6 38.8 39.7 40.4

4.1 4.1 4.1 4.4 4.1

242.5 242.2

502.0 502.1

390.9 391.9

299.4 300.2

259.5 259.9

39.8 40.3

4.0 4.1

1972--May

Sept. 6 p 13 pe

__ ___

1/

_

__

_

__

_

_

_

_

'

----'"---~ --------' -- ' pe - Partially estimated. snown in parentheses are current projectiurn. Annual rates of change other than those for the past are rounded to nearest half per cent. As shown in the Aug. 11. 1972 Bluebook.

NOTES:

Data

STRICTLY CONFIDENTIAL (FR)

SEPTEMBER 15, 1972 Table 3 RESERVE EFFECTS OF OPEN MARKET OPERATIONS AND OTHER RESERVE FACTORS (Millions of dollars, not seasonally adjusted)

Bills ______& Accept.

Open Market Operations 1/ RP's 3 / Coupon Agency Net Issues Isses

Daily Average Reserve Effect 21 Other 4/ A Member Open Market Bank Borrowing Factors Operations (8)

Total

(4)

b in reserve categories available res. 5/ req. res. against U.S.G. and interb. (6)+(7)+(8)-(9) (tO)

Monthly 1972 -

Mar.

Apr. May June July Aug. Sept. Oct.

July

Aug.

Sept.

-~-"---

870 644 180 748 -543 -906

1,275 -

2,408 472 1,386

750

1,205 -1,205

-

-

221 570

816

22

285 -2,869 2,882

842 -3,503 2,972

-

19

588 -633 91

26

- 76

-

446

-

529

-

2 9 16 23 30

- 59 - 37

735

82 -351 -316

46 -1,589 1,536

638 65 128 -1,824 1,127

6 13 20 27

-409 -331

-2,322

-2,731

-

-

5 12

-

26

278

827

57 329 276 S7

-2,048

'

14 486 -131 42 335 194

251

593 -124 192 -254

249 -272 356 1

-

180

- 36

-

53

292

155

- 98

-165 -185p

135 -298 291 -339 4 0 5p

-115p -60p

4 3p -778p

-

- 25

232 449 89

135

-

168

387 -

505

88 123 -

158 378 -315 147 -60

614 -1,053

698

612

642

'

691

1,687 469 201 463 -238

10

-

141

3

67

p

4 p 8 99

1,

p

7

"

lepresents change in the System's portfolio from end-of-period to end-of-period; includes redemptions in regular bill auctions. Repreqents change in daily average level from preceding period. Includes matched sale-purchase transactions as well as RP's. Sum of changes in vault cash, currency in circulation, Treasury operations, F.R. float, gold and foreign accounts, and other FR accounts. Reserves to support private nonbank deposits. Target change for August and September reflects alternative B, as shown in the August 11, 1972 bluebook. Target change for previous months reflects the bluebook patterns that are consistent with the mid-points of target ranges that were adopted during the month.

Target available reseres 5/

STRICTLY CONFIDENTIAL SEPTEMBER 15,

(FR)

1972

Table 4 SECURITY DEALER POSITIONS AND BANK RESERVES Millions of Dollars U.S. Govt. Security Dealer Positions

Period

Bills

Other Security Dealer Positions

Coupon Issues

Corporate ___Bonds

(1) 1971 -- High L6w 1972 --

1971 --

1972 --

1972 --

(2)

Member Bank Reserve Positions

Municipal

Excess

Bonds

Reserves

(4)

(3)

Borrowings

Net Free

at FRB

(5)

Basis Reserve Deficit

searves

8 New York

38 Other

(7)

(8)

(9)

202 -988

-4,714 -1,545

-5,499 -2,569

12

380 -308

-4,623p -1,638

-4,833 -1,910

(6)

4,733 1,350

2,834 343

337 0

556 30

590 - 61

High Low

*4,291 1,916

1,585 -93

247 10

316 40

835p -133

Aug. Sept.

1,858 2,481

654 1,087

35 118

105 168

198 206

804 501

-606 -295

-2,644 -3,355

-3,513 -4,159

Oct. Nov. Dec.

2,263 2,417 2,544

1,521 2,462 1,761

173 201 170

246 328 251

207 263 165

360 407 107

-153 -144 50

-2,436 -3,056 -2,791

-4,258 -4,063 -4,375

Jan. Feb. Mar.

3,004 2,408 3,489

1,416 1,176 604

135 149 101

206 136 185

173 124 249

20 33 99

153 91 150

-2,667 -3,203 -3,208

-4,192 -3,072 -3,522

Apr. May June

2,612 2,792 2,694

274 675 205

46 123 87

99 134 260

136 104 204

109 119 94

27 - 15 110

-3,026 -2,625 -2,828

-3,299 -2,652 -2,864

July

2,262

97

142

166

147

202

- 55

-2,997r

-2,745r

Aug.

2,643

692

114

176

261

439

-17

-3,817

-2,904

5 12 19 26

2,294 2,131 2,164 2,451

-79 -93 65 194

75 134 247 112

152 182 186 143

328 223 147 79

312 227 173 172

16 4 - 26 - 93

-2,673 -3,082 -2,846 -3,230

-2,005 -3,314 -2,702 -2,075

2

2,315

686

93

98

242

363

-121

-2,736

-2,654

9

1,958

927

129

140

130

287

-157

-4,353

-2,674

16 23

2,195 *2,346

114 118

167 237

254 40

3

*

886 551

-4,375 -3,859

30

*3,801

*

347

118

240

280p

477p

-197p

-3,321

-2,607 -,20

-

- 3 , 46 286p

-3,459p -4,827p

July

Aug.

Sept. 6 13

4

* ,223r *4,291

* *

314r 239

103 50p

204 195p

1,180 84 38

8

835p -74p

p

8 1

3p 223p

4,

3p

20

27 Notes:

1A-Government

security

aealer

trauing positJons

are

-d n

a

.4.-._ LIIII -u auUm

i .

VLu0

Sac

L

a

(g uIoi

h. h WcommU c

ldbl*l.n. UU

-----r

agreements maturing in 16 days or more, are indicators of dealer holdings available for sale over the near-term. are debt issues still

in sydlicate, excluding trading positions.

less net Federal funds purchases. are Friday figures.

The basis reserve deficit is

u

-... r hase yt pen uaCso

Other security dealer positions

excess reserves less borrowing at Federal Reserve

Weekly data are daily averages for statement weeks, except for corporate and municipal issues in syndicate which

* STRICTLY CONIPbIENTIAL

-25

CONFIDENTIAL (FR) SEPTEMBER 15,

1972

Table 5 SELECTED INTEREST RATES Per Cent

Short-term

Period

Federal Funds

Long-term

Treasury Bills 90-day 1-year

Federal Funds (1)

(3)

(2)

Corporate C o New issue Aaa*

90-119 day Commercial Coerc Paper (4)

Mnicipal Municipal Bond Buyer

(5)

S. Gov't

(10-Yr. Constant Maturt.) Maturity) (7)

(6)

FNA Auction Yields (8)

1971 --

High Low

5.73 3.29

5.47 3.32

5.94 3.53

5.88 4.00

8.23 6.76

6.23 4.97

6.89 5.42

8 07 7.32

1972 --

High Low

4.90 3.18

4.72 3.03

5.39 3.60

5.00 3.75

7.42 6.86

5.54 4.99

6.55p 5.87

7.63 7.54

1971 --

Aug. Sept.

5.57 5.55

4.94 4.69

5.52 5.19

5.74 5.69

7.65 7.44

5.83 5.37

6.58 6.14

7.97 7.87

Oct. Nov. Dec.

5.20 4.91 4.14

4.46 4.22 4.01

4.75 4.49 4.40

5.42 4.85 4.66

7.29 7.19 7.09

5.06 5.20 5.21

5.93 5.81 5.93

7.84 7.71 7.62

Jan Feb. Mar.

3.50 3.29 3 83

3.38 3.20 3.73

3.82 4.06 4.43

4.03 3.81 4.10

7.07 7.16 7.22

5.12 5.29 5.31

5.95 6.08 6.07

7.61 7.61 7.55

Apr. May June

4.17 4.27 4.46

3.71 3.69 3.91

4.65 4.46 4.71

4.55 4.45 4.60

7.31 7.21 7.30

5.43 5.31 5.34

6.19 6.13 6.11

7.58 7.63 7.62

July Aug.

4.55 4.80

3.98 4.02

4.90 4.90

4.83 4.75

7.32 7.24

5.41 5.30

6.11 6.21

7.62 7.63

July 5 12 19 26

4.61 4.62 4.46 4.54

4.06 4.06 3.96 3.96

5.03 4.96 4.87 4.90

4.82 4.88 4.88 4.78

7.38 7.34 7.30 7.35

5.43 5.44 5.41 5.35

6.13 6.12 6.10 6.10

Aug. 2 9 16 23 30

4.56 4.69 4.87 4.75 4.90

3.82 3.84 3.88 4.01 4.33

4.79 4.77 4.73 4.89 5.21

4.73 4.63 4.70 4.80 4.85

7.27 7.24 7.22 7.23 7.31

5.32 5.24 5.22 5.32 5.38

6.14 6.15 6.18 6.22 6.38

Sept.6 13 20 27

4.89 4.69

4.62r 4.72

5.32r 5.39

5.00 5.00

7.28 7.32p

5.39 5.38

6

1972 --

1972 --

N te o

s:

Wn

see y

lWA

a

a

or

co

l

ums

ta

are

n

l

sLtemenl

we

v

k averages

oL

n4

UaLLy

d

Un

uaca.

o

ror

cotuns

j

duu

anu

7.62 7.62 7 63 7.62

6.51r 5 .5 p

me

wee

k

Ly

d uate

la

h L ellu-U

7.63

d

L

f

-0 u-PO I

h

d

ecaenua

week over which data are averaged. Column 6 is a one-day quote for the Thursday following the end of the statement week. Column 8 gives FNMA auction data for the Monday preceding the end of the statement week. The FNMA auction yield is the implicit yield in weekly or hi-weekly auction for short-term forward comitments for Government underwritten mortgages. * Confidential (FR)

-- This series is for internal use only.

CONFIDENTIAL

Appendix Table I RESERVES AND MONETARY VARIABLES

1 . Per

i

d

Total

"----- " -- '- "-------money Stock Measures 2 . 3

Available to Support Pvt. Deposits

Nonborrowed

Anmally

M1

M

M

(3)

(4)

(5)

"--'-"--'" "-------Bank Credi Measures Adjusted . Total Credit Loans and Proxy Investments

1968 1969 1970 1971

+

7 6 - 1.2

+ +

6.0 7.3

+ + +

8.6 2.7 8.1 7.8

-..

1 Total Time

(6)

(Per Cent Annual Rates of

--

Time Other than CD's

^'L Thrift 'lnstitution IDeposLts

CD's

Nondeposit Funds

(10)

(11)

(12)

(9)

Growth)

+ 8.3 + 2.8 + 7.8 + 13.3

+ + + +

(FR)

September 15, 1972

(13)

(Dollar Change in

9.7 0.6 8.3 9.5

+

+ 16.2

+ 6.4 + 3.4 + 7.7 + 17.5

- 12.6 + 14.5 + 7.9

+ 13.0 8.4 7.6

+ 11.3 - 4.9 + 17.9 + 17.9

+ 11.1

+ 1.4 + 11.0

2.8

+

2.6

Semi-Annually

lst Half 1970 2nd Hlf 1970

+ 0 4 I 11.6

1st Hilf 1971 2nd Hilf 1971

+ +

1st H"lf 1972

9.6 4.7

+ 11 6

+ 3.0 + 15.2

+ 5.2 +10.6

4

5 6

+

5.2

+ 5.8 + 10.1

+ 5.0 + 10.3

+ 4.8 + 11.4

+ 52 + 10.8

+ 8.4 + 26.3

+ 6.0 + 15.6

+ 4.7 + 10.6

+ 2.6 + 11.9

+ -

0.7 9.1

+ +

9.3 6.5

+10.9 + 4.6

+ 10.0 + 2.4

+ 15.5 + 6.3

+ 17 0 + 8.8

+ +

9.7 8.8

+ 11.5 + 10.6

+ 22.3 + 12.2

+ 21.2 + 10.1

+ 20.1 + 13.5

+ +

3.9 4.1

-

7.1 0.4

+ 12.1

+ 9.0

+ 7 4

1

3.7

-

0.3

+10.8 +10.6 + 4.3 + 4.8 410.8 + 7.1

+

11.1

+

13. 4

+ 11.3

+ 11.3

+ 15.6

+ 14.7

+ 17.9

+

18.1 12.4 4.4 8.0 1 3 8.6

4 18.9 + 14.4 + 7.8 + 9.6 + 15 5 + 10.8

+ 10.9 + 8.4 + 7.6

+ 12.3 + 10 3 + 9.7 + 11.1

+ 28.8 + 14.7 + 8.2 + 15 9

+ 27.5 + 14.0 + 5.3 + 14.7

-

4.6 2.6 0.4

-

03

1.5 1.6 1.6

Quarterly 1971 1971 1971 1971

+ 8.9 + 10.0 + 7.2

1 t Otr

1972

2nd Otr.

1972

+ 10 1 + 12 8

+ 9.5 + 9.0 + 6.0 + 6.8 + 11.0 + 13.0

Tan. Feb MIr

+ 10 6 + 8 6 + 7 3

+ 8.1 + 11.7 + 8.4

4 8.2 4 9.0 +14.9

+ 2.8 + 13.4 + 11.0

+ 14.1 + 20.7 + 18.7

Apr M'v Tune

4

13 4

+ 16.9 + 9.9

7 9

+11.6 + 8.7 11.3

4

+

I

4.4 4.1

-

+ 2.8 + 22.9

V6 8 + 6. -0.8

+ 10.1 + 3.2 -

2.1

+ 3.6 + 5.9 + 4.8

+

0.5

+

2.6

+ 9.2 + 7.4 + 15.6 + 7.0 +6 2 + 7.9 +86 + 8.0

4 4 + + + + +

3.2 12.6 11.9 7 7 2.6 5.6 14.2

+

6.0

1st 2nd 3ld 4th

1971*

Qtr. Qtr. Qtr Qtr

Jul,

Aulg. Sept

1972"

+

I

+

2.2

R

5

+ 12.9

7.6

Oct. Nov. Dec.

+

10.7

- 2.8 + 2.0 + 21.4

Jan.

4 20.2

+ 23.1

Feh

-

-

Mar

Apr May June Iuly Aig. p

-

7.4 3.4

5.9

+ 15.8 + 22.9 S6 9 + +

84 2 9

+

9 3

1 6

+ 13 3 + 22.2 + 7 5 + 8.8

-.

-

1 6

+

3.8 A

9.1

+ 10.6

+ 4

3.7 1.1

+

q.3

+

5.3

8.2

+ 14.1

+

9.1

+ + + + +

+ 15.7

+ 11.8

+ 14.5

+ 2.6 + 1.3 + 2.3 + 1.8 - 0 1 + 3.7

+ 12.8 + 14.6 + 9.1

+ 28.8 + 29.7 + 26.0

+

26.0 + 28.3 + 26.5

+ 23.9 + 18.5 + 22.1

+ + +

1.1 0.9 0.6

-

8.5 8.8 7.7

+ 7.4 + 9.7 + 13.6

+ 13.2 + 15.5 + 14.8

+ 16.0 4 13.6 + 11.8

+ 22.5 + 12.9 + 15.8

0.2 0.7 0.8

-

+ +

+ 10.7 + 4.1 4 7.9

+ 6.2 + 11.9 + 10 9

+ 9.4 + 4.2 + 10.7

+ + +

4.8 3.2 7.9

+ 16.7 + 10.3 + 13.8

+ + +

1.1 0.4 0.8

4 4.8 + 11.2 + 13.1

+ 11.9 + 6.2 + 14.9

+ 17.1 + 9.1 + 20.8

+ 13.7

+ 13.0 4 11.4 + 13.7

+ +

1.1 0.5 1.2

+

+ 14.2 + 12.4 + 18 0 + 3.6 + 18 4

+ 20.0

+ + + + + + + +

+

+

P.7

+ 11 3

+ 15 1

4- 11.1

+

+ 15.7 + 20.9 + 19.3

+ 10.2 + 11.9 + 10.3

+ 12.1 + 13.9 +10 7

+ 15.5 + 15.2 + 12.0

+ + +

+ + +

+ 10.5

75 2.9 2.9

+

6.6

+

6.2

+ 7.1 + 6.5 + 10.2

+

9.1

+ + + + + + + +

+ + 4 + + + +

15.4 16.7 13 8 10.9 9.7 11.5 13.6

+

10.4

+ 8.7 + 11.0

13.4 14.3 11.6 7 2 7.7 10.6 11.3 8.0

.L ____________________

±

MNMP Reserve rpequrempmnts on PurodeolTr hnrrwingp are included beginning October 16, hbginning October 1, 1970. p - Preliminary

+ 17 1

+ + + + +

9.9

+

5.9

+ + + + + +

17 7 13.5 14 7 4.7 12 2 9.3

___________

7 3

+ 14 8

+

16.2

+ 7 8 + 12.4 + 17.8 + 16.3

+ 10.2 + 18.2 I

+ 11 6 + 13.9 L.............J

+ 13.0

+ 17.0 + + + + + + +

24.4 15.4 10 8 78 12 6 14.8 85

+ 10.3

21.9 17.3 13.7 12.8 20.5

23.0 17 6 19 r 15.8 10.6 16 6 18.4 11.1

0.2 0.6 - 04 + 1.3 + 1 6 + 0.8 + 1 0 + 1.2

L

1969, and requirements on bank-related commercial paper are included

1.9 - 1.0 + 0.4 -

0.2 0.4

+

0.1

+ +

0.8 0.5

-

1.3 - 0.1 - 0.3

+ -

U.S. Gov't. Demand

0 1 0.2

+

0 ?

+

01

+

0.3

illions) + + -

0.1 0.3 1.1 0.3

Appendix Table II

CONFIDENTIAL(FR)

RESERVES AND MONETARY VARIABLES (Seasonally adjusted, Billions of dollars) _

Reserves

Money Stock Measures

Time

Adjusted

Total

Credit

Loans and

Proxy

Investments

Time

(8)

(9)

(10)

(11)

572.6 588.3 634.0

304.6 305.4 330.6

390.6 406.0 438.9

204.2 194.1 228.9

180.6 183.2 203.4

423.1 430.4 437.1

642.2 653.4 663.9

333.4 336.7 339.6

443.6 449.0 452.4

234.4 240.2 245.4

170.7 173.0 174.5

441.5 446.6 450.6

672.5 681.0 687.8

342.0 344.5 346.7

455.2 458.9 464.1

227.4 228.0 227.6

175.8 176.3 175.5

453.4 454.5 455.6

693.8 697.6 701.2

349.8 351.0 353.3

28.588 28.728 28.844

227.7 227.7 228.2

175.5 175.5 175.7

458.3 460.8 464.7

706.5 711.6 718.1

29.064 29.244 29.625

228.8 231.2 233.5

176.0 178.0 179.9

469.9 475.5 480.1

29.798 29.951 30.148 30.365 30.568

235.0 235.5 236.6 239.4 240.6

180.9

483.0 486.1 490.4 495.0 498.3

79.899 29.728 29.632

235.1 734.o

181.1 181.0

Available to

Non-

Support Pvt.

Total

borrowed

Deposits

(1)

(L)

27.249 27.977 29.132

26.471 26.829 28.764

24.963 25.245 26.747

197.4 203.7 214.8

154.0 157.7 165.8

378.0 368.8 418.2

1971--Jan. Feb. Mar.

29.390 29.600 29.779

28.958 29.240 29.445

26.930 27.132 27.470

215.3 217.7 219.7

166.0 168.0 169.7

Apr. May June

29.991 30.327 30.527

29.859 30.106 30.106

27.735 27.935 28.199

221.2 223.8 225.5

July Aug. Sept.

30.639 30.743 31.073

29.915 29.985 30.556

28.358 28.521 28.503

Oct. Nov. Dec.

30.882 30.970 31.246

30.485 30.535 31.079

1972--Jan. Feb. Mar.

31.772 31.616 32.032

31.678 31.582 31.931

Period

September 15,

IJ)

M2 Total

(4)

M3

Pt. Dep.

1972

Other

Bank Credit Measures

Total

Other than CD's

Non-

Thrift

Deposit

Institution Deposits

CD's

Funds

U.S.

Gov't Demand

(14)

(15)

194.6 201.5 215.8

7.0 20.0 11.6

5.1 5.3 6.4

207.8 212.7 217.4

219.2 223.0 226.8

10.1 8.6 7.0

5.8 4.9 4.0

248.1 251.3 254.4

220.3 222.8 225.0

231.0 234.4 237.2

5.1 4.1 4.5

5.6 5.4 4.3

466.5 471.1 475.4

256.4 257.3 259.6

225.9 226.5 228.0

240.4 243.1 245.6

4.3 4.1

5.1 5.7 6.6

354.7 358.0 361.9

480.1 482.6 488.6

263.3 265.3 269.9

230.6 233.1 236.4

248.3 250.8 253.4

4.8 5.4 4.0

4.7 5.4 6.2

727.3

364.9

737.4 745.9

366.7 372.1

494.4 499.5 507.0

274.4 278.1 279.9

241.2 244.3 246.5

257.4 261.8 265.8

4.0 3.6 3.7

6.3 3.7 6.1

752.7 758.8 766.1 774.8 781.5

376.3 380.9 382.4 386.3 389.3

508.5 516.3 516.3 520.7 528.6

282.8 287.0 290.9 293.7 297.1

248.1 250.7 253.8 255.6 257.8

269.7 272.6 275.7 279.7 283.2

3.5 3.7 3.8 3.9 4.2

7.4 7.4 5.3 5.3 4.6

781.1 2R1.7 282.9 284.0

747. 247.5 247.9 248.6

3.5 3.5 3.5 3.7

7.7 8.7 6.4 6.4

249.5 250.0 250.7 251.3 252.1

3.6 3.6 3.8 3.9 3.7

7.9 6.9 6.9 7.6 7.3

(5)

(12)

Annue. ly Dec. Dec.

1968 1969

Dec.

1970

Monthly:

32.643 32.525 32.830 32.728 33.059 32.967 33.138 32.924 33.395 33.029

Apr. May June July Aug. p

181.1

181.9 184.5 185.5

3.Q

Weekly: 1972--Apr.

May

5

32.655

12

37.576

19 26

32.615 32.845

32.519 127.17 32.568 32.569

70.071

234.5 235.2

3

32.529 32.638 32.995 32.783 33.033

37.415 32.555 32.960 12.723 32.819

29.787 29.990 30.011 29.820 30.055

10 17 24 31

375.8

180.4 191.q

234.7 234.5 236.8 235.0 236.3

180.6 180.1 182.3 180.5 181.8

484.2 484.5 487.4 486.3 488.4

379.1 378.8 381.4 382.2

285.2 286.0 286.9 287.9 288.7

36.5 36.6 37.3 36.1

182.0 181.9 182.6 181.3

489.3 490.0 491.5 490.7

383.2 381.6 383.7 381.3

289.5 290.7 291.2 291.9

252.7 253.4 254.2 254.6

3.7 3.5 3.8 4.0

6.9 5.1 5.6 3.3

?75.6 375.2

376.8

381.4

June

7 14 21 28

33.217 )2.953 33.213 32.761

3.163 2.864 3.158 2.649

30.187 30.054 30.322 29.943

July

5 12 19 26

13.583 3.119 32,671 )2.462 33.301 33.143 33.124 32.968

30.449 30.055 30.357 30.475

38.0 40.9 !39.7 239.5

183.2 186.0 184.7 184.5

693.7 495.8 495.0 495.4

384.4 384.4 386.6 388.2

293.1 292.8 293.5 294.4

255.7 255.0 255.3 255.9

3.8 3.5 4.1 4.0

5.4 3.5 5.2 6.2

33.340 33.368 33.481 33.690 33.597

33014 33.124 33.125 32.750 33.096

30.570 30.434 30.563 30.278 30.875

239.7 240.1 !40.9 240.5 241.2

184.8 185.0 185.9 185.3 186.0

496.2 497.2 498.6 498.4 499.8

387.5 388.2 389.8 388.7 390.1

295.1 295.6 296.5 297.6 299.0

256.5 257.0 257.7 257.9 258.6

4.1 4.1 4.1 4.4 4.1

5.5 6.0 5.6 3.1 3.4

33.816

32.978

31.436

242.5

502.0

390.9

299.4

259.5

4.0

4.4

Aug.

Sept.

NOTES:

2 9 16 23 30 p 6 p

187.2

Reserve requirements on Euro-dollar borrowings are included beginning October 16, 1969, and requirements on bank related commercial paper are included beginning October 1, 1970. Adjusted credit proxy includes mainly total member banks deposits subject to reserve requirements,bank-related commercial paper, and Euro-dollar borrowings of U.S. banks. Weekly data are daily averages for statement weeks. Monthly data are daily averages except for nonbank commercial paper figures which are for last day of month. Weekly data are not available for M total loans and investments and thrift institution deposits. 3,

p

7

482.8 482.3 482.4 483.8

- Preliminary.

Cite this document
APA
Federal Reserve (1972, September 18). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19720919
BibTeX
@misc{wtfs_bluebook_19720919,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1972},
  month = {Sep},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19720919},
  note = {Retrieved via When the Fed Speaks corpus}
}