bluebooks · December 18, 1978

Bluebook

Prefatory Note

The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the bestpreserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that this document may contain occasional gaps in the text. These gaps are the result of a redaction process that removed information obtained on a confidential basis. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act.

In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing). 2 A two-step process was used. An advanced optimal character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff.

Strictly Confidential (FR)

Class I FOMC

December 15, 1978

MONETARY AGGREGATES AND MONEY MARKET CONDITIONS

Prepared for the Federal Open Market Committee By the staff

Board of Governors of the Federal Reserve System

STRICTLY CONFIDENTIAL (FR) CLASS I - FOMC

December 15

1978

MONETARY AGGREGATES AND MONEY MARKET CONDITIONS Recent developments (1)

M-1 contracted in November at a 4.6 per cent annual

rate and appears to be growing at only about a 2 per cent annual rate in December.

Thus, over the two months, M-1 is projected to

decline at a 1¼ per cent annual rate.

Demand for M-1 has been

tempered by the recent substantial increases in market interest rates, as well as by the introduction of automatic transfer services (ATS), but the recent weakness appears greater than can be explained by these factors.

Shifts to ATS accounts are estimated to be reducing

M-1 growth by about 3 percentage points at an annual rate over November and December.

M-2 growth is projected to slow to about a 5 per

cent rate over November and December, below the low end of the FOMC's range.

The interest-bearing component of M-2 grew slightly more

rapidly in November than in October, reflecting growth of money market certificates and the large time deposits in this aggregate.

Small

time deposits subject to fixed rate ceilings declined in November, as did savings deposits despite the introduction of ATS.

Given the

Comparison of FOMC Policy Ranges for November-December to Latest Staff Estimates

M-1 M-2 Federal funds rate (per cent per annum)

Ranges

Latest Estimates

Upper limit of 5

-1.3

6 to 9½

9¾ to 10

5.0 Avg. for statement week ending Nov. 22 9.68 29 9.85 9.87 Dec. 6 9.79 13

weakness in savings deposits, M-l+ is projected to decline at a 4 per cent annual rate over November and December.

Inflow of deposits to

thrift institutions in November slowed somewhat, even though sales of money market certificates continued to be robust. (2)

Following the November FOMC meeting, the Account

Management raised its Federal funds rate target to the 9-7/8 per cent to 10 per cent range set by the Committee. midpoint of the 9 3/4

As the

weakness in the monetary aggregates developed, the FOMC voted on December 8 to maintain the 9-7/8 per cent Federal funds target until the next meeting, unless the monetary aggregates weakened significantly further.

Member bank borrowing has varied between $600 and $800 million

in recent weeks, a normal level for the prevailing spread between the discount and Federal funds rate. (3)

The trade-weighted exchange value of the dollar has

declined by 1 per cent since the November FOMC meeting, but is currently about 9 per cent above its October 31 low.

The dollar's declines

against the German mark and Swiss franc have more than offset a small rise against the Japanese yen.

1/ (4) Despite further increases in the Federal funds rate, private short-term interest rates have changed little, on balance,

Operations on behalf of Treasury and System accounts resulted in net purchases of about $2 billion

-3from peak levels reached in the week preceding the November FOMC meeting.

However, CD rates, as indicated by the highest offering

quotes, are currently below their mid-November peaks, when banks were issuing CD's in large volume, partly to finance credit extensions to their own foreign branches and to foreign banks.

The 3-

month Treasury bill has risen substantially since the period just prior to the November meeting, and as a result the unusually wide spread of private short-term rates over the bill rate has narrowed. The market supply of these bills for private investors has been enlarged by the Treasury's decision to shift part of its weekly bill offerings from the 6-month to the 3-month area, while demand for bills by foreign institutions has been lower as a result of their reduced exchange market intervention.

The bank prime rate has

increased 50 basis points since the last FOMC meeting in response to earlier advances in market rates. (5) Bond yields rose 10 to 30 basis points in the intermeeting period as a bearish tone developed in capital markets when published data suggested that economic activity has continued at a stronger than anticipated pace and inflationary pressures have remained intense.

Agency and municipal bond new issue volume rose

in November, while the corporate calendar remained moderate.

With

its dollar balances augmented by earlier sales of obligations directly

-4to foreign official accounts, the Treasury raised no new money from

private investors in domestic markets in the intermeeting period.1 / (6) Loan demands at commercial banks appear to have remained relatively strong in November.

Business loans expanded at

about their October pace, while real estate and probably consumer loans increased more rapidly.

To finance loan expansion, banks

issued a substantial volume of large negotiable and nonnegotiable CD's, and in addition, liquidated security holdings.

The increase

in use of managed liabilities was particularly sharp earlier in the month when private demands for dollar credits seem to have been augmented by borrowing in anticipation of possible dollar depreciation. (7) The demand for residential mortgage credit apparently has remained quite strong, as indicated by a further rise in mortgage commitments at S&L's to a record level in October and an estimated vigorous expansion of mortgage credit in November at both banks and thrift institutions.

In the face of this continued strong demand,

and with deposit flows slowing, the average rates on new commitments for conventional mortgages at S&L's have risen 15 basis points to 10.35 per cent since the FOMC meeting.

1/ The Treasury did raise around $550 million of new money from foreign official accounts through sale of nonmarketable issues and add-ons to regular auctions. The Treasury also sold $1.6 billion equivalent of M1-denominated securities on December 12. The proceeds of this issue are being warehoused with the Federal Reserve with the Treasury's dollar proceeds being added to its general balance. As the Treasury balance at the Federal Reserve is reduced, the Desk will, all other things equal, sell Treasury securities to the public to neutralize the reserve impacts--in effect substituting Federal Reserve sales of securities for Treasury issuance of securities in U.S. markets.

-5(8)

The table on the next page shows percentage annual

rates of change in related monetary and financial flows over various time periods.

1976 & 1977 Average

Past Twelve Months Nov. '78 over Nov. '77

Past Six Months Nov. '78 over May '78

Past Three Months Nov. '78 over Aug. '78

Past Months Nov. '78 over Oct. '78

Nonborrowed reserves

2.0

7.1

8.2

8.3

12.8

Total reserves

3.0

6.6

5.4

3.8

-4.2

Monetary base

7.5

9.1

8.7

9.3

6.1

6.9

7.3

5.7

4.4

-4.6

share draft accounts, and demand deposits at mutual savings banks). 11.0

4.9

3.5

2.3

-7.1

10.4

8.1

8.5

8.0

4.3

12.3

9.2

10.3

10.4

6.8

M-4 (M-2 plus CD's)

8.6

10.2

9.5

11.1

12.9

M-5 (M-3 plus CD's)

11.1

10.4

10.8

12.1

12.0

Month-end basis

9.7

11.4

9.5

8.7

6.5

Monthly average

9.5

11.5

11.1

11.6

14.0

-0.4

2.0

1.4

3.0

7.2

0.2

0.3

0.5

0.8

Concepts of Money M-1 (Currency plus demand deposits) 1/ M-1+ (M-l plus savings deposits at commercial banks, NOW accounts at banks and thrift institutions, credit union

M-2 (M-l plus time deposits at commercial banks other than large CD's) M-3 (M-2 plus deposits at thrift institutions)

Bank Credit Loans and investments of all commercial banks 2/

Short-term Market Paper (Monthly average change in billions) Large CD's Nonbank commercial paper

1/ Other than interbank and U.S. Government. 2/ Includes loans sold to affiliates and branches. NOTE: All items are based on averages of daily figures, except for data on total loans and investments of commercial banks, commercial paper, and thrift institutions--which are derived from either end-of-month or Wednesday statement date figures. Growth rates for reserve measures in this and subsequent tables are

adjusted to remove the effect of discontinuities from breaks in the series when reserve requirements are changed.

-7Prospective developments (9)

Shown below for Committee consideration are two alternative

specifications for the monetary aggregates and the Federal funds rate for the December-January period.

Alternative A calls for no near-term change

in the Federal funds rate, while alternative B increases policy restraint marginally in coming weeks.

(More details and longer-term data are

contained in the tables on pp. 8 and 9.) Alt. A

Alt. B

M-1

2½ to 7½

2 to 7

M-2

6 to 10

5½ to 9½

M-1+

1 to 5

½ to 4½

9½ to 10¼

9¾ to 10½

Ranges for Dec.-Jan.1/

Addenda

Federal funds rate (Intermeeting period) (10)

Alternative A presumes a Federal funds rate between

now and the January meeting centered in the prevailing 9¾ to 10 per cent range.

The staff projects that M-1 will increase only some-

what in December, on a daily average basis, but the evident growth of income and expenditures suggests that a substantial increase in M-1 is likely in January.

Consequently, growth in this aggregate over the

Ranges for the forthcoming short-run policy period expressed in the form recommended by the subcommittee on the directive in its report distributed to the FOMC are shown in appendix IV for comparison purposes.

Alternative Levels and Growth Rates for Key Monetary Aggregates

M-2

M-1+

M-1 1/ Alt. A

Alt. B

Alt. A

Alt. B

Alt. A

Alt. B

November December January

360.6 361.2 363.5

360.6 361.1 363.2

585.3 584.9 588.4

585.3 584.6 587.8

870.5 874.6 881.8

870.5 874.3 881.1

1978

QIII QIV

357.3 361.3

357.3 361.2

582.6 586.3

582.6 586.2

854.0 870.8

854.0 870.7

1979

QI QII QIII

364.3 366.4 368.7

363.9 366.0 368.7

591.5 600.8 610.4

590.7 599.9 610.2

887.2 903.1 919.0

886.3 902.0 918.5

2.0 7.6

1.7 7.0

-0.8 7.2

-1.4 6.6

5.7 9.9

5.2 9.3

4.5 3.3 2.3 2.5

4.4 3.0 2.3 3.0

2.5 3.5 6.3 6.4

2.5 3.1 6.2 6.9

7.9 7.5 7.2 7.0

7.8 7.2 7.1 7.3

3.9 2.4

3.7 2.6

3.1 6.4

2.8 6.6

7.8 7.2

7.6 7.3

3.2

4.8

4.7

7.6

1978 1979

Growth Rates

Monthly:

1978 1979

December January

Quarterly Average: 1978 1979

QIV QI QII QIII

Semi-Annual: QIII '78-QI '79 QI '79-QIII '79 Annual: QIII '78-QIII '79 1/

The staff has assumed that over the longer-run policy period from QIII '78 to QIII '79 M-l growth will be reduced 3 percentage points by ATS. In projecting GNP, monetary aggregates, and interest rates the staff has carried forward the assumption in most recent Bluebooks that M-l, in the absence of ATS, would increase at a 6k per cent annual rate over the longer-run. Thus, the observed growth of M-l is expected to be 3k per cent over the QIII '78 to QIII '79 period.

Alternative Levels and Growth Rates for Key Monetary Aggregates (cont'd) M-3

Bank Credit

Alt. A

Alt. B

Alt. A

Alt. B

November December January

1492.8 1501.9 1514.5

1492.8 1501.5 1513.5

971.6 977.3 985.4

971.6 977.3 984.8

1978

QIII QIV

1456.1 1493.0

1456.1 1492.9

944.9 969.8

944.9 969.6

1979

QI QII QIII

1525.2 1556.6 1587.7

1523.9 1554.8 1586.8

993.6 1016.0 1038.9

992.4 1014.2 1037.5

7.3 10.1

7.0 9.6

7.0 9.9

7.0 9.2

1978 1979

Growth Rates Monthly:

1978 1979

December January

Quarterly Average: 1978

QIV

10.1

10.5

1979

QI QII QIII

8.6 8.2 8.0

8.3 8.1 8.2

9.8 9.0 9.0

9.4 8.8 9.2

9.5 8.2

9.3 8.3

10.3 9.1

10.1 9.1

9.0

9.9

9.8

Semi-Annual: QIII '78-QI '79 QI '79-QIII '79 Annual: QIII '78-QIII '79

-10December-January period is projected to be in a 2½ to 7½ per cent annual rate range.

Transfers from demand to ATS accounts are expected

to depress M-1 growth over the two-month period by 2 to 4 percentage points, a bit less than previously assumed. (11)

If December projections materialize, M-1 growth in

the current quarter will be only about 4

per cent, with ATS effects

reducing growth by about one percentage point.

Thus, even adding

back the effects of ATS, M-1 growth will be the slowest in over two years.1/

for a quarter

The staff's econometric model suggests that,

given the estimated almost 13 per cent rate of increase in nominal GNP in the fourth quarter, interest rates can explain only part of the slowdown in M-1.

It is too early to be certain if this shortfall is

transitory or represents the onset of another downward drift in money demand associated with more aggressive adoption of cash management techniques.

The staff's projection for the near term

assumes that underlying money demand will lead to a strengthening of M-1 growth, but that over the longer run policy period there will be some continued downward drift in money demand. (12)

The supplementary aggregate

M-1+ is expected to

expand in a 1 to 5 per cent range over December-January, noticeably less than M-1, as weakness in non-ATS savings continues to limit growth in this aggregate.

While the staff is projecting that regular

With the exception of the second quarter of 1978--when nominal GNP accelerated to over a 20 per cent annual rate as the economy rebounded from the adverse weather and coal strike during last winter--the implied V-1 for the current quarter will increase at its most rapid rate in almost three years. Appendix II displays projected rates of growth of velocity.

-11passbook accounts at commercial banks will begin to rise in December, following their unusually large recent contraction, the average level of such accounts is expected to grow only modestly, if at all, over the period. (13)

Under alternative A, M-2 is projected to expand in a

6 to 10 per cent annual rate range in December-January, a somewhat more rapid pace than in recent weeks.

This acceleration reflects

mainly the expected strengthening of M-1 and the anticipated end of the recent decline in outstanding savings deposits.

Growth in the

interest-bearing component of M-2 is expected to be at about a 9 to 10 per cent annual rate, with growth almost wholly attributable to expansion in large time deposits that are not subject to interest rate ceilings. (14)

Projected credit demands suggest that banks will be

forced to continue to rely on managed liabilities to supplement their lendable funds.

Further issuance of large CD's, though at a reduced

rate, is in prospect, as is a resumption of growth in domestic nondeposit liabilities and net Eurodollar borrowing.

Banks thus will

experience mounting balance sheet pressures as borrowing ratios

continue to rise and as further run-offs of bank holdings of Treasury securities cause liquidity ratios to decline further.

-12(15)

At thrift institutions some further moderation in the

rate of deposit inflows from the pace of the late summer and early fall is probable in light of higher market yields and the completion of the stock adjustment of financial assets that accompanied the introduction of the new 6-month certificates.

Nevertheless, virtually all of the

growth of deposits at S&L's and MSB's is expected to continue to come from sales of MMC's.

Sample data for early December indicate

that S&L's are not only rolling over their maturing 6-month certificates, but continuing to issue a substantial net volume of these instruments. Aggressive marketing of MMC's is being induced by competitive pressures, by a need for funds to meet mortgage loan commitments, and by FHLB advances policies.1/ (16)

If the Federal funds rate remains within the 9¾ to 10

per cent range over the intermeeting period, as envisioned under alternative A, interest rates on short-term market instruments will likely fluctuate within a narrow range.

Private short-term rates

appear to have fully adjusted to the current funds rate level, and no significant change in private short-term credit demands appears in prospect for the weeks immediately ahead.

The relative movement of

Treasury bill rates will, of course, be influenced by the level of foreign exchange market intervention and the portfolio policies of foreign official institutions.

The FHLBB has indicated that advances will not be liberally available to institutions that do not make reasonable efforts to roll over maturing 6-month certificates.

-13(17)

Yields on longer-term bonds are likely to remain

basically stable into the early weeks of January, barring unexpected strength in the monetary aggregates or in current economic indicators. The financing activity of corporations and municipalities is expected to be seasonally light over the holiday period.

In December, Treasury

financing activities will be confined to roll-overs of maturing 2and 4-year notes.

Net borrowing by the Treasury in the domestic

market over the next several weeks is expected to be limited to a $1¼ to $1¾ billion auction of 15-year bonds to be conducted around the turn of the year; since participants are anticipating this offering, they have presumably already discounted it.1/ With deposit flows slowing somewhat, yields on commitments for new conventional mortgages may continue to edge higher. (18)

Under alternative B, the Federal funds rate would

rise by mid-January to the midpoint of a 9¾ to 10½ per cent range. M-1 growth would likely be in a 2 to 7 per cent annual rate range over December-January, and M-1+ and M-2, respectively, in a ½ to 4½ and

5½ to 9½ per cent range.

The resulting increase in short-term market

rates of interest would further slow the growth of deposits subject to fixed rate ceilings, induce more aggressive offerings of MMC's and large denomination time deposits, and a tightening of bank lending terms--with the prime loan rate moving up to 11¾ or 12 per cent.

1/ The Treasury is also expected to issue Swiss franc denominated notes, amounting to about $1.2 billion equivalent, in the first part of January.

-14Long-term yields would also probably move up, but the light financing calendar and further evidence of the System's determination to constrain monetary growth would tend to limit such movement. (19)

If M-1, as expected, expands at a 4 per cent annual

rate in the fourth quarter, the longer-run growth range for this aggregate implies an M-1 growth over the first three quarters of 1979 at a 2¾ per cent annual rate.1/

Assuming the staff's current GNP

projections and some downward shift in money demand, the staff believes that such growth in M-1 is generally consistent with the Federal funds rate ranges shown in Appendix I.

Reflecting monetary restraint already

in train, the midpoint of alternative A would call for no further rise in the funds rate over the longer-run policy period.

The alternative

B pattern contemplates that an increase in the funds rate to a little over 10 per cent in the intermeeting period would be maintained through the first quarter of 1979.

This additional restraint on monetary

expansion would imply that the funds rate could be lower than the alternative A path by next summer, while still achieving the same growth in the aggregates over the QIII '78 to QIII '79 period. However, if the expected downward drift in money demand does not occur, higher interest rates than indicated by either Federal funds path would be required to achieve the desired growth in the aggregates.

This assumes, as did previous Bluebooks, that, in the absence of ATS, the Committee would desire M-1 growth of 6¼ per cent over the QIII '78 to QIII '79 policy period. The staff has assumed ATS will reduce M-1 by 3 percentage points over this period and that therefore observed M-1 growth is expected to be 3¼ per cent over this QIII '78 to QIII '79 policy period.

-15Directive language (20)

Given below are suggested operational paragraphs

for the directive.

The language added last month "giving due

regard ... to the program for supporting the foreign exchange value of the dollar" has been retained along with the reference, added in October, "to uncertainties associated with the introduction of ATS." Alternative language consistent with the short-run specifications of the alternatives discussed in the preceding section is shown for the Committee's objective for the Federal funds rate early in the period. At a later point, alternative language is also provided for placing main emphasis either on monetary aggregates or, as was agreed at the November meeting, on money market conditions.

The specifications

adopted last month are shown in strike-through form.

In the short-run, the Committee seeks to achieve bank reserve and money market conditions that are broadly consistent with the longer-run ranges for monetary aggregates cited above, while giving due regard to the program for supporting the foreign exchange value of the dollar, to developing conditions in domestic financial markets, and to uncertainties associated with the introduction of ATS.

Early

in the period before the next regular meeting, System open market operations are to be directed at attaining a weekly average Federal funds rate (A) (B)

AT ABOUT THE CURRENT LEVEL. slightly above the current level.

-16-

Subsequently, operations shall be directed at maintaining the weekly average Federal funds rate within the range of {DEL: 9¾-to-10] ____

TO ____ per cent.

In deciding on the specific objective

for the Federal funds rate, the Manager is to be guided mainly by a range of tolerance for the annual rate of growth over the [DEL: November-December]DECEMBER-JANUARY period of[DEL: 6-to-9½]____ ____

per cent in M-2, provided that the rate of growth in M-1

does not appear to exceed [DEL: 5] ____per cent. Money market emphasis The objective for the funds rate is to be raised or lowered within its range if the rate of growth of M-2 appears to be close to or beyond the upper or lower limit of its range. Weight is to be given to M-1 if it appears to be growing at a rate close to or above its limit. If the rates of growth in the aggregates appear to be falling outside the limits of the indicated ranges at a time when the objective for the funds rate has already been moved to the corresponding limit of its range, the Manager will promptly notify the Chairman, who wil

then decide whether the

situation calls for supplementary instructions from the Committee. Monetary aggregates emphasis The objective for the funds rate is to be raised or lowered in an orderly fashion within its range if the rate

-17of growth of M-2 appears to be significantly above or below the midpoint of the indicated range.

Weight is to be given

to M-1 if it appears to be growing at a rate close to or above its limit. If the rates of growth in the aggregates appear to be falling outside the limits of the indicated ranges at a time when the objective for the funds rate has already been moved to the corresponding limit of its range, the Manager will promptly notify the Chairman, who will then decide whether the situation calls for supplementary instructions from the Committee.

1 Recently Established M-1 Growth Ranges and Actual M-1 CHART

Billions of dollars 6%

Projection-

375

Q3 '78-Q3 '79

6 5 2 2 % -- 3365

S355 SQ2 '78-02 '79 0 0s

335

d 4,'%

365

1 365

SQ1 '78-Q1 '79 325 _

355

365

335

325_

355 Q4 '77-Q4 '78

335

-- 345

-2 325

335

335 -

325

I 1977

I 1978

I 1979

325

CHART 2

Recently Established M-2 Growth Ranges and Actual M-2

Billions of dollars 945 Projection -s

930

Q3'78-Q3 -915 -

900

- 885 - 870 855

'79

885 870 855 S9%

885

01 '78-Q1 '79 e

870

.%%

855

885 -870 -855

Q4'77-Q4/2'78

04 '77-Q4 '78 -840 -825 S810 795

I 1977

1978

1979

I .I 780

Chart 3

Recently Established M-3 Growth Ranges And Actual M-3

Billions of dollars 1640 Projection -io

1610

Q3 '78-Q3 '79

- # #

- 1580 "

1550

- 1520 1490

1520

S1490 1370

- 1550 -1520

1340

'79

1310

-1490

7%%

1370

1550

1340

1520

1310

S1490 -1460

4 '77-% 4 7 04 '77-04 '78

1370

- 1430

1340 1310

4nn

1370

1340

1310

I I

1977

I 1978

I 1979

1310

Chart 4

Recently Established Bank Credit Growth Ranges and Actual Bank Credit

Billions of dollars 11

1055

Projection Q3 '78-Q3 '79

- 1035

X-C-

1015

995

975

955

11A%

0/2 '78-02 '79 1 %u

1975

875-

855 -

4 '

975

Q1 '78-Q1 '79

835-

.%7/

10 %

835

975

955 935

85535

915

895 875

855 835

04 '77-04 '78

875

955

935

855

955 s

J 935

10-

S---10

875

9 3 5

I 1978

I I

1979

855 835

CHART 5

Recently Established M-1+Growth Range and Actual M-1+

Billions of dollars

Projection---

640

7%%

620

Q3 '78-Q3 '79 -.-

600

580

560

I 1977

I 1 I 1 iI II 1978

I 1979

Appendix I Projected Federal Funds Rate Alt. A

Alt. B

1978--QIV

94 to 9-5/8

1979--QI

9k to 10

9-7/8 to 10-3/8

QII

9k to 10

QIII

9k to 10

9 to 9%

Appendix II Implied Velocity Growth Rate

Alt. A

Alt.

V-1 (GNP/M-1) 1978--III IV

2.6 7.8

(6.7)

1979--1

8.1 6.7

(4.4) (2.8)

5.7

(2.4)

II III

(6.7) 8.5 6.7 5.3

(4.9) (2.8) (2.1)

V-1+ (GNP/M-1+) 1978--111 IV 1979--I II III

V-2 (GNP/M-2) 1978--III IV 1979--I II III

Note:

1.3 4.5

1.3 4.5 4.3 2.0

0.9

Figures in parentheses reflect V-i velocity without ATS.

Appendix Table III-1 MONEY STOCK--M-1 (Annual rates of growth, compounded quarter ly)/ Ending Period 1975 I

74IV

751

7511

75III

75IV

761

76II

Base Period 76III 76IV

771

7711

_____ 77111

77IV

781

7811

2.1

4.3

6.5

III

5.2

6.7

7.0

4.6

5.4

4.9

2.9

4.6

5.3

4.8

3.8

4.7

5.0

5.6

5.4

4.9

5.9 7.0

III

4.9

5.3

5.1

4.6

5.2 5.4

5.2

5.7

5.5

5.2

5.8 6.2

5.8

5.4

5.8

5.6

6.1 6.4

6.2

7.4

7.2

5.7

6.1

6.0

6.5

6.9

6.8

7.8

7.9

8.6

III

6.0

6.4

6.3

6.8

7.1

7.9

8.0

8.4

8.3

6.1

6.5

6.4

6.9

7.2

7.9

8.2

8.0

7.7

6.1

6.5

6.4

6.8

7.1

7.6

7.7

7.4

7.0

6.3

6.4

6.8

7.2

7.4

7.5

8.0

8.1 8.2

8.1

8.3

III

6.5

6.8

6.9

7.2 7.5

7.5

8.0

8.2

8.1

8.0

8.2

9.1

7.9

6.4

6.7

7.0 7.2

7.2

7.6

7.5

7.3

7.2

7.6

6.2

1976 I

1977 I

1978 I

78111

* *

* * * * * *

10.3

* ***

1979 III

Alt.

5.8

6.0

5.9

6.1

6.2

6.4

6.2

6.1

5.9

5.6

5.3

5.1

4.1

3.2

Alt.

5.8

6.0

5.9

6.1

6.2

6.4

6.2

6.1

5.9

5.6

5.3

5.1

4.1

3.2

Based on quarterly average data.

Appendix Table III-2 MONEY STOCK--M-1+ (Annual rates of growth, compounded quarterly)1/ Ending Period

741V

751

7511

75I11

75IV

1975 I

5.3

8.5

11.9

III

9.4

11.6

8.8

10.0

9.8

11.0

10.7

10.4

14.1

1976 I

761

7611

Base Period 7611 76IV

771

7711 7711

77IV

781

9.1

6.9

10.5

11.6

11.5

13.9

13.8

III

10.1

10.9

10.7

10.6

11.8

10.7

11.5

11.4

11.5

12.6

12.2

11.3

15.1

11.0

11.7

11.8

12.8

12.4

12.0

14.1

13.2

10.8

11.4

11.3

12.1

11.7

11.2

12.4

11.1

8.9

III

10.5

11.1

11.0

10.9

11.5

11.1

10.6

11.3

10.1

8.6

8.2

10.2

10.7

10.6

10.5

11.0

10.5

10.0

10.4

9.3

8.0

7.6

7.0

10.1

9.9

10.3

9.8

9.2

9.5

8.4

7.3

6.7

6.0

5.0

7.2

6.8

6.3

6.0

7.0

1978 I

9.8 10.2

9.6

III

9.3

8.9 * *

7.7

9.8

9.7

9.9

9.5

9.0

9.1

8.2

9.6

9.5

9.3

9.5

9.1

8.6

8.7

7.8 6.9

6.5

6.1

5.8

6.2

5.4

9.1

9.0

8.8

8.9

8.5

7.9

8.0

7.1

6.3

5.8

5.4

5.0

4.0

10.0

78111

11.3

1977 I

7811

* * * * * * * * * *

1979 III Alt.

8.4

8.5

8.3

8.1

8.2

7.8

7.4

6.7

6.0

5.7

5.4

5.2

5.3

4.9

4.8

Alt.

8.3

8.5

8.3

8.1

8.2

7.8

7.4

7.3

6.7

6.0

5.7

5.4

5.2

4.9

4.7

l/ Based on quarterly average data.

Appendix Table III-3 MONEY STOCK--M-2 (Annual rates of growth, compounded quarterly)1/ Ending Period

4IJ

1975 I

6.4

751

LZK

75111

75V

76I

7611

Base Period 76111 76IV

771

8.3

10.2

III

8.9

10.2

8.4

9.1

8.6

6.9

8.9

9.6

9.4

9.0

11.1

9.2

9.7

9.6

9.4

10.7

10.3

III

9.2

9.6

9.5

9,3

10.2

9.7

9.0

9.7

10.2

10.1

10.9

11.2

13.3

9.8

10.2

10.3

11.0

11.2

12.3

11.2

9.8

10.2

10.8

10.7

10.8

11.4

10.4

9.5

III

9.9

10.2

10.7

10.6

10.7

11.1

10.3

9.9

9.7

10.0

10.4

10.3

10.5

10.0

9.9

9.8

1976 I

1977 I

1978 I

7711

7711 77IV

781

78II

10.3

10.2

9.8

9.4

9.3

8.3

9.9

9.3

8.8

8.5

7.7

7.0

9.5

9.8

9.7

9.4

9.7

9.6

9.5

9.8

9.7

9.6

9.7

9.1

8.6

8.4

7.8

7.6

III

9.4

9.6

9.5

9.8

9.6

9.1

8.7

8.6

8.2

8.1

9.2

9.3

9,5

9.5

9.4

9.6

9.5

9.4

9.0

8.6

8.5

8.2

8.1

8.7

78111

* * *

* *

1979 III

Alt.

9.0

9.2

9.1

9.0

9.2

9.0

8.9

8.5

8.3

8.1

7.9

7.8

8.0

7.9

7.6

Alt.

9.0

9.2

9.1

9.0

9.2

9.0

8.9

8.5

8.3

8.1

7.9

7.8

7.9

7.6

Based on quarterly average data.

Appendix Table III-4 MONEY STOCK--M-3

(Annual rates of growth, compounded quarterly)Ending Period

1975 1

____~_~_

74V 251

75I1I 2IV

761

7611

Base Period 76III 7

IllI

mII

771

7711

77111 771v

781

7811

711I

8.3

10.6

13.0

III

11.6

13.2

13.5

11.1

12.1

11.6

9.8

11.4

12.2

12.0

11.2

12.7

11.6

12.2

12.0

11.6

12.5

12.3

III

11.5

12.1

11.9

11.5

12.1

11.8

11.3

12.0

12.5

12.4

12.2

12.8

12.9

13.2

15.0

12.1

12.5

12.3

12.8

13.0

13.9

12.8

11.9

12.3

12.2

12.1

12.4

12.8

11.7

10.7

12.0

12.3

12.1

12.4

12.7

12.0

11.6

12.5

11.9

12.2

12.1

12.0

12.3

12.2

12.4

11.7

11.4

11.8

11.1

11.6

11.9

11,8

11.6

11.8

11.7

11.6

11.0

10.5

9.5

7.9

11.3

11.6

11.4

11.3

11.4

11.3

11.1

10.5

10.0

9.0

8.0

III

11.3

11.5

11.4

11.2

11.3

11.2

11.1

11.0

10.5

10.1

10.0

9.4

8.8

9.2

10.4

11.2

11.4

11.3

11. 1

11.2

11. 1

11.0

10.5

10.1

9.6

9.2

9.7

10.5

Alt.

10.8

10.9

10.8

10.6

10.7

10.6

10.4

9.9

9.7

9.6

9.2

8.9

9.1

9.3

9.0

Alt.

10.8

10.9

10.8

10.6

10.7

10.5

10.4

10.3

9.9

9.6

9.5

9.2

8.9

9.1

9.3

9.0

1976 1

1977 I

IV 1978 I

9.9

10.5

1979 III

Based on quarterly average data.

APPENDIX IV Alternative Short-run Growth Rates and Federal Funds Rate Ranges

The table below shows growth rate ranges for M-1 and M-2 expressed as the growth from the average of the three months ending in October to the average of the three-months ending in January. These ranges are based on the same staff projections of December and January as appear in the present two month ranges shown in paragraph 9 of the text.

This three-month averaging procedure is proposed by the

Subcommittee on the Directive, in its December 13 memorandum to the FOMC Alt. A

Alt. B

M-l

1-1/4 to 3-1/4

1 to 3

M-2

6 to 7-1/2

Ranges for average of threemonths ending in January over three-months ending in October

6 to 7-1/2

Addendum M-1+ Federal funds rate (Intermeeting period)

-3/4 to 3/4

-1 to 1/2

9-1/2 to 10-1/4

9-3/4 to 10-1/2

As may be seen in the table, the difference in method of specifying growthrates in aggregates for the short-run operating period changes these growth rates, narrows the ranges, and reduces the difference in growth rates between alternatives.

This reflects the

IV-2

combined effect of the reduction in the annualization factor from 1/ the reduced weight of revisions in the terminal month 6 to 4, (which in the proposed procedure gets only 1/3 of its present weight), and the partly offsetting effect from including revisionsin the month preceding the terminal month (i.e., the month of the FOMC meeting) in the end-period. The above factors, including a review of historical relation-

ships between revisions of monetary aggregates in the month of the FOMC meeting and the succeeding month,

suggest

that projected growth rates

of both M-1 and M-2, calculated on a three-month average over a three

month average,would have been revised over the intermeeting period by about 37 per cent of the revisions that occurred in the projected

growth rates over the present two-month policy period.

Thus, experience

suggests that the tolerance ranges under the proposed procedure should be about two-fifths as wide as at present in order to assure no change in FOMC responses in adjusting the Federal funds rate to unanticipated movements in the aggregates from one FOMC meeting to the next.

1/ The proposed procedure has an end-period that is centered threemonths from the center of the base period, while the present procedure has a one month end-period that is two months beyond the base month. 2/ These revisions in the month prior to the terminal month have been positively correlated with the terminal month revisions, and thus are a factor tending to add to the variability of the projected growth rate under the proposed procedure.

Chart I

12/15/78

Money Market Conditions and Interest Rates

MARKET CONDITIONS

Per cent

INTEREST RATES Short-term

Per --

cent

INTEREST RATES Long-term

cent 14

Weekly

Weekly Averages

verages

Per

-10

.RAL FUNDS RATE -

FHA MORTGAGES

2 7Borrowed 111 1

-Monh

1 11 1

S5 -

FNMA Monday Auction GOVT. BONDS 10-Yr. Averages

Billions of dollars Borrowed

S~3-Month

1977

1978

PRIME COMMERCIAL PAPER 4-6 Month

MUNICIPAL BOND BUYER Thursdays

Net Borrowed I

+5 0

I I

I I 1979

I 1

1 11

I 1

1978

l 1979

1 1 1977

I I I I I~ 1978

Il 1979

Chart

CONFIDENTIAL (FR) Class II-FOMC

Actual and Projected Reserves

12/15/78

Billions of dollars 44

TOTAL 41

-40

-39

-38

-37

Annual rate, per cent MONTHLY GROWTH RATES 20

TOTAL

S1+

NONBORROWED

SII JASO

I N

1977

1978

11 S O

20 N

MA 1979

Table 1

CONFIDENTIAL (FR) CLASS II-FOMC

MONETARY AGGREGATES

DEC.

15,

1978

ACTUAL AND CURRENT PROJECTIONS, SEASONALLY ADJUSTED Money Supply Broad Narrow (M2) (Ml)

Period

MONTHLY

TotalOther Total 4

Time & Savings Deposits Than CD's Other Savin s

_Nondeposit

CD's

Surces of Funds 2/

LEVELS-SBIL

501.6 505.4 509.9 (513.4)

223.9 221.9 (220.8)

9.1 10.6 13.5)

6.8 11.3 9.4)

1.3 4.5 -6.1)

7.9 8.9 7.9)

10.1 9.5 12.9)

6.4 10.0 10.3)

1.6 1.3 S-0.5)

12.5 7.0 4.3 5.7)

13.8 7.9 23.7 8.5)

11.8 9.1 10.7 8.2)

9.7 -1.6 -10.7 -5.9)

13.6 17.7 28.1 18.7)

25.0 1.4 98.0 10.1)

16.2)

9.5)

-8.3)

23.7)

54.4)

360.9 362.0 360.6 (361.2)

1978--SEPT. OCT. NOV. DEC.

Total U.S. Govt. Deposits 1/

862.4 867.4 870.5 1874.6)

(

17.4 21.2 21.7 12.9)

589.7 593.6 605.3 (609.6)

2 77.4 2181.5 2188.1 (2' 92.6)

224.2

88.1 88.2 95.4

69.8 74.9 73.2

( 96.2)

ANNUAL GROWTH QUARTERLY 8.8 10.4 S5.7)

11.5 9.2 0.3)

1978-2ND QTR. 3RD QTR. 4TH QTR.

11.4 (

17.0 21.9)

22.9 6.5 36.8)

QUARTERLY-AV 9.9 7.6 4.5)

1978-2ND QTR. 3RD QTR. 4TH QTR.

10.5 17.3 (19.1)

32.8 7.5 (27.5)

MONTHLY 14.1 3.7 -4.6 2.0)

1978-SEPT. OCT. NOV. DEC.

-1.3)

NOV.-DEC. WEEKLY

LEVELS-SBIL

1978-NOV.

DEC.

NOTE: 1/ 2/

S5.0)

1 8 15 22 P 29 P 6

361.2 362.3 361.4 359.3 358.7

868.2 870.9 870.9 870.1 869.2

19.6 22.1 20.4 23.1 23.5

598.9 602.6 604.9 607.0 606.9

507.1 508.6 509.5 510.7 510.5

222.9 222.9 222.4 221.5 221.1

284.2 285.7 287.1 289.2 289.5

91.8 94.0 95.4 96.3 96.4

360.7

872.1

17.0

607.5

511.5

220.9

290.6

96.1

79.8 73.4 68.2 72.2 76.3

P - PRELIMINARY DAIA SHOWN IN PARENTHESES ARE CURRENT PROJECTIONS. INCLUDES TREASURY DEMAND DEPOSITS AT COMMERCIAL BANKS AND FEDERAL RESERVE BANKS AND TREASURY NOTE BALANCES. INCLUDES BORROWINGS FRUM OTHER THAN COMMERCIAL BANKS IN THE FORM OF FEDERAL FUNDS PURCHASED, SECURITIES SOLD UNDER PLUS GROSS LIABILITIES TO OWN FOREIGN BRANCHES MENTS TO REPURCHASE, AND OTHER LIABILITIES FOR BORROWED MONEY, LOAN RPS, AND OTHER MINOR ITEMS. LOANS SOLD TO AFFILIATES, (EURODOLLAR BORROWINGS),

AGREE-

1-A TIME AND SAVINGS DEPOSITS AT ALL COMMERCIAL BANKS Table

SEASONALLY ADJUSTED EXCEPT AS NOTED

erod

DEC.

Total

Business (NSA)

ndividual Nonproft

15,

1978

Time Deposits

Savings Deposits

Total Time and Savings

CONFIDENTIAL (FR) CLASS II-FOMC

Government (NSA)

Total

Memo: Large Large Small Negotiable CD's Denomination Denomination 7

OUTSTANDING

(I BILLIONS) 205.8 206.3 206.5 206.1 206.0 207.7 209.2 208.7 207.2

561.7 565.? 571.6 574.5 579.4 583.0 589.7 593.6 605.3

221.0 221.6 222.0 221.7 220.9 222.4 224.2 223.9 221.9

55.3

17.7

16.9

2.3

1977--III IV

13.1 17.0

3.9 2.9

4.7 3.3

1978--1 II III

17.3 14.1 13.6

1.4 0.9 0.7

3.5 6.4 2.9 4.9 3.6 6.7 3.9 11.7

0.6 0.4 -0.3 -0.8 1.5 1.8 -0.3 -2.0

197d--NAR. APR. MAY JUNE JULY AUG. SEPI.

O)CT. *UV.

CHANGES

4.7 4.7 4.8 4.9 4.2 4.0 4.0 4.2 3.8

166.5 167.5 168.5 170.1 171.3 171.9 173.6 177.0 177.7

82.0 83.4 87.1 86.7 87.4 86.3 88.1 88.2 95.4

340.8 343.6 349.7 352.8 358.5 360.6 365.5 369.7 383.5

174.3 176.1 181.2 182.7 187.2 188.7 191.9 192.7 205.8

-1.6

17.7

23.9

0.4 0.3

-1.2 -0.6

9.2 14.1

5.9 12.7

3.3 1.3

0.7 7.1

1.2 0.9 1.3

-0.2 0.2 0.1

0.3 -0.2 -0.7

16.0 13.2 12.8

14.5 10.4 9.3

1.5 2.8 3.6

8.8 6.5 1.6

0.5 0.2 -0.4 -0. 1 1.7 1.5 -0.5 -1.5

0.1 0.1 0.1 -0.2 0.2 0.2 0.0 -0.1

0.0 0.1 0.1 -0.7 -0.2 0.0 0.2 -0.4

2.8 6.1 3.1 5.7 2.1 4.9 4.2 13.8

1.8 5.1 1.5 4.5 1.5 3.2 0.8 13.1

1.0 1.0 1.6 1.2 0.6 1.7 3.4 0.7

1.4 3.7 -0.4 0.7 -1.1 1.8 0.1 7.2

10.5 10.6 LO.t

10.? 10.8 10.6 10.8 11.0

11.0 10.9

9'LLIONS)

1977 YEAR

13.8

11.3

QUARTERLY AVERAGE:

MONTHLY

AVERAGE:

1978--APR. MAY JUNF JULY AUG. SEPT. OCT. NOV. A

NOTE: COLUMNS (11, (2). AND 19) ON AGGREGATES. FIGURES IN COLUMNS (1), DERIVED FROM DATA REPORTED BY SMALL GOVERNMENIAL UNITS-COLUMNS 14) AND WEDNESDAY BY LARGE COMMERCIAL BANKS SHIPS.

THIS TABLE CORRESPOND TO COLUMNS (4), (6), AND (8), RESPECTIVELY, ON TABLE I-MONETARY WITH ESTIMATES FOR NONMEMBER BANKS REFLECT DAILY DATA REPORTED BY MEMBER BANKS, (2), AND (6) MEMBER BANKS, BENCHMARKED TO NONMEMBER CALL REPORT FIGURES. SAVINGS DEPOSITS OF BUSINESS AND 151-- AND LARGE DENOMINATION TINE DEPOSITS -- COLUMN (7)--REFLECT BREAKDOWNS REPORTED EACH BLOWN UP TO REPRESENT DEPOSITS AT ALL COMMERCIAL BANKS ON THE BASIS OF CALL REPORT RELATION-

NFIDENTIAL (F.R.) CLASS -FOMC

TABLE 2

BANK RESERVES ACTUAL AND CURRENT PROJECTIONS, SEASONALLY ADJUSTED BANK RESERVES Period

Total Reserves

Nonborrowed Reserves

DEC.

15,

1978

RESERVES

_REQUIRED

Monetary Base

Total Required

Private Demand

Total Time Deposits

Gov't. and Interbank

2 MONTHLY LEVELS-SMILLIONS 1978--SEPT. OCT.

NOV. DEC.

0 112

41,172 41,434 41,289 (41,335)

40,156 40,586 (40,674)

139,750 140,782 141,501 (142.441)

11.5 4.6 ( 1.6)

(

3.7 5.0 5.6)

10.4 8.5 S 7.7)

(

1.1 6.2 5.6)

40,979 41,261 41,112 (41,252)

22,845 23,059 22,705 (22,604)

16,740 16,618 16,936 (17,2041

(

1,394 1,584 1,470 1,4451

PERCENT ANNUAL GROWTH QUARTERLY 1978--2ND QTR. 3RD OTR. 4TH QTR.

11.7 4.4 S2.7)

(

10.1 4.4 (11.1)

13.1 8.3 -4.2)

QUARTERLY-AV 1976--2ND QTR. 3kD QTR. 4TH QTR.

(

6.6 8.2 2.6)

8.1 9.0

(

7.2 8.2 S3.0)

t.5)

5.0 9.5 S 2.7)

(

11.5 6.6 6.4)

MONTHLY 1978-StPT. OCT. NOV. DEC.

8.1 7.6

10.7

-4.2

12.8

1.3)

2.6)

12.6 8.9 6.1 8.01

-1.4)

7.7)

7.1)

40,005 40,606

15 22 29

41,310 41,304 41,049 41,361 41,397

41,576

NOV.-DEC.

1.3

7.4 b.3 -4.3 4.1)

11.2 -18.4 l -5.3)

-0.1)

1 -11.8)

9.2 -8.7 23.0 (19.0)

14.2

21.2)

WEEKLY LEVELS-SMILLIONS 1978-NOV.

1 8

DEC.

NOTE:

40,757 40,606

141,361 140,927 141,072 141,769 142,155

41,197 40,918 40,804 41,306 41,357

23*299 22,556 22,589 22,742 22*856

16,542 16,705 16,875 17,024 17,155

1,356 1,657 1,340 1,540 1,346

40,878

142,215

41,470

22,666

17,230

1,574

40,416

RESERVE SERIES HAVE BEEN ADJUSTED TO REMOVE DISCONTINUITIES DATA SHOWN IN PARENTHESES ARE CURRENT PROJECTIONS.

ASSOCIATED

WITH

CHANGES IN RESERVE REQUIREMENT RATIO.

1/ TABLE 3 NET CHANGES IN SYSTEM HOLDINGS OF SECURITIES($ million, not seasonally adjusted) Treasury Bills Net Change 2/

ith iyear

Treas ury Coupons Net Puurchases 3/

5 - 10

1-5

Federal Agencies Net Purchases 4/

Over 10

Total

-490 7,232 1,280 -468 863 4,361 1977--Qtr. III Qtr. IV

886 186

1978--Qtr. I Qtr. II Qtr. III

-2,655 5,444 3,152 4,395

1978--Oct.

4 11 18 25

721 100

Nov.

1 8 15 22 29

-1,667 -2,052

1 - 5

1 vear

5 - 10

Over 10

167 129 196 1,070 642 553

1,582 1,415 1,747 6,202 5,187 4,660

681 628

96 166

128 108

1,021 1,001

247 334 235

2,175 2,246 1,697

135

115

1,057

631

176

1,059 864 3,082 1,613 891 1,433 S

87 163

139 108

-1,358 -46 -154 1,272 3,607 -2,892

4,273

-2,331 34

177

145

707

-643

46 -92

127 -81

104 --

24 -

301 -173

7,930 4,632

127

104

301

5,724

2,950

-173

231 1,043

----------555

3,358

625 ----------1,154

-1,594 -1,265

807 1,037

-1,133 1,224 266

-2,536 1,701 1,102

-81 S

507 628

1,631 9,273 6,303 7,267 6,227 10,035

386

-92

-6,270 5,822 -6,962 6,923

-923

504 716

592 400 1,665 824 469 792

139 --

----

628 --

163 --

108 --

---1,037 --

---------

----

-1,672 -2,052

--- --- --- --- --- 1,540 683

-923

6 13 20 27

LEVEL--Dec. 13 /in f4 n j-m

539 500 434 1,510 1,048 758

1,123 1,156 774

-170 -2,151

Oct. Nov.

Dec.

116 99

789 579 797 3,284 3,025 2,833

235 283 2,635

July Aug. Sept.

Within

(FR)

Net Change Outright Holdings *l/ TnlInl Total 5/

1 vear

1978--June

STRICTLY CONFIDENTIAL CLASS II - FOMC DECEMBER 15, 1978

-1,809 -6,663 1,783 2,092 2,643 -10,500 6,851

45.4

10.3

31.6

14.7

10.7

67.3

1.9

3.7

1.5

7.9

120.6

hllinns

114-s

Change from end-of-period to end-of-period. Outright transactions in market and with foreign accounts, and redemptions (-) in bill auctions. Outright transactions in market and with foreign accounts, and short-term notes acquired in exchange for maturing bills. Excludes redemptions, maturity shifts, rollovers of maturing coupon issues, and direct Treasury borrowing from the System. Outright transactions in market and with foreign accounts only. Excludes redemptions and maturity shifts. In addition to net purchases of securities, also reflects changes in System holdings of bankers' acceptances, direct Treasury borrowings from the System, and redemptions (-) of Agency and Treasury coupon issues. Includes changes in both RP's (+) and matched sale-purchase transactions (-).

STRICTLY CONFIDENTIAL (FR) CLASS II - FOMC DECEMBER 15, 1978

TABLE 4 SECURITY DEALER POSITIONS AND BANK POSITIONS (millions of dollars)

U.S. Govt.

Security

Dealer Positions

BsIssues

uBillp

Member Bank Reserve Positions

Underwriting Syndicate Positions Corporate

Bonds

Excss**Borrowing at FRB** Reserves

Total

Seasonal

Basic Reserve Deficit** 8 New York

Bonds

38 Others

Oer

1977--High Low

7,234 1,729

3,017 -1,445

295 0

513 -111

1,861 20

-9,151 -4,234

-13,975

1978--High Low

5,625 278

2,043 -1,076

215 0

719 -227

1,716 172

-8,224 -2,370

-14,657

1977--Nov. Dec.

3,617 4,257

610 804

36 195

251 193

863 570

-6,971 -7,403

-11,825 -11,350

1978--Jan. Feb. Mar.

4,127 3,418 2,713

327 1,492 740

42 24 96

268 243 200

484 406 328

-6,047 -4,980 -6,778

-12,299 -12,603 -11,060

Apr. May June

3,183 1,203 2,847

-183 5 78

46 25 35

149 219 178

557 1,212 1,094

-6,196 -4,038 -4,514

-12,998 -11,653 -12,202

July Aug. Sept.

1,196 1,994 2,571

-626 423 125

51 34 49

197 168 193

1,317 1,139 1,060

-3,651 -4,793 -5,098

-10,204 -11,089 -11,357

1,495 *1,960

-309 *462

16 23

177 8 1 2p

1,277

-4,651 44 8 -3, p

-11,551

4 11 18 25

1,676 1,393 1,507 1,255

-19 -369 -528 -290

35 5 24 0

123 367 -119 367

1,286 1,239 1,250 1,314

-5,173 -6,292 -4,918 -3,139

-10,398 -12,406 -13,059 -10,731

1 8 15 22 29

1,786 1,639 1,660 *1,462 *2,004

12 1,032 687 *275 *135

3 0 10 73 30

113 386 245

1,305 698 633 604p 791p

-3,843 -4,221 -4,763 -2,519 -2,370

-10,522 -12,872 -13,128 -14,657 -13,585

6 13 20 27

*1,909 *2,520

*-281

64 120p

Oct. Nov. 1978--Oct.

Nov.

Dec.

*-83

p 40p 6

10 p 4 - p

70 3

98p p

5 94

48 2

-2, p 4 - ,081p

- 8,206 - 8,273

-13,452p

- 13 , 33 7p -13,348p

NOTE: Government security dealer trading positions are on a commitment basis. Trading positions, which exclude Treasury securities financed by repurchase agreements maturing in 16 days or more, are indicators of dealer holdings available for sale over the near-term. Underwriting syndicate positions consist of issues still in syndicate, excluding trading positions. The basic reserve deficit is excess reserves less borrowing at Federal Reserve less net Federal funds purchases. Weekly data are daily averages for statement weeks, except for corporate and municipal issues in syndicate which are Friday figures. * **

Strictly confidential. Monthly averages for excess reserves and borrowings are weighted averages of statement week figures.

TABLE 5 SELECTED INTEREST RATES (per cent)

STRICTLY CONFIDENTIAL CLASS II - FOMC DECEMBER 15, 1978

Short-Term Federal unds

Treasury Bills Market 3-mo 1-yr

Auction 6-mo

CD's New IssueNYC 90-Day

Comm.

Paper 90-119 ---- Day L----Y-

Bank Prime Rate

U.S. Govt.-Constant Maturity Yields 3-yr

7-yr

(8) (9) (9)

(12)

(13)

(14)

(15)

(16)

7.99 7.26

8.36 7.90

8.48 7.95

5.93 5.45

9.00 8.65

8.98 8.46

8.39 7.56

8.94 7.72

8.85 8.01

9.30 8.61

9.35 8.48

6.45 5.58

10.35 8.98

10.40 9.13

9.48 8.43

7.22 7.30

7.46 7.59

7.76 7.87

8.28 8.34

8.25 8.38

5.49 5.57

8.92 8.96

8.86 8.94

8.19 8.27

7.93

7.61

7.86

8.14

8.68

8.60

5.71

9.02

9.17

8.56

8.00 8.00

7.67 7.70

7.94 7.95

8.22 8.21

8.69 8.71

8.67 8.67

5.62 5.61

9.15 9.20

9.31 9.35

8.64 8.60

6.82 7.06 7.59

8.00 8.27 8.63

7.85 8.07 8.30

8.06 8.25 8.40

8.32 8.44 8.53

8.90 8.95 9.09

8.85 8.98 9.07

5.80 6.03 6.22

9.36 9.57 9.70

9.44 9.66 9.91

8.71 8.90 9.05

8.00 7.86 8.34

7.85 7.83 8.39

9.00 9.01 9.41

8.54 8.33 8.41

8.55 8.38 8.42

8.69 8.45 8.47

9.14 8.82 8.86

9.18 8.91 8.86

6.28 6.12 6.09

9.74 9.79 9.76

10.01 9.81 9.79

9.15 8.97r 9.04r

8.49 9.20

9.12 10.15

8.98 10.14

9.94 10.94

8.62 9.04

8.64 8.80

8.69 8.75

9.17 9.27

9.13 9.27

6.13 6.19

9.86 10.11

10.03 10.30

9.25r 9.39r

8.38 8.42 8.56 8.61

8.75 9.13 9.21 9.38

8.64 8.83 8.97 9.09

9.75 9.75 10.00 10.00

8.50 8.47 8.57 8.69

8.56 8.52 8.63 8.69

8.64 8.61 8.67 8.73

9.04 9.03 9.15 9.24

6.07 6.10 6.14 6.21

9.85 9.85 9.85 9.88

9.91

9.19r 9.19r 9.19r 9.19r

8.98 9.42 9.29 9.00 9.33

10.00 10.00 10.25 10.25 10.25

9.33 10.01 10.24 10.21 10.15

10.25 10.61 10.75 10.96 11.43

9.12 9.10 8.95 8.96 9.16

8.82 8.84 8.76 8.78 8.88

8.80 8.80 8.72 8.72 8.78

9.28 9.30 9.24 9.25 9.28

6.22 6.17 6.11 6.16 6.29

9.90 10.05 10.20 10.28 10.30

10.20

10.33

9.48r 9.39r 9.40r 9.35r 9.43r

9.31 9.35p

6,29 6.45

10.35 n.a.

-10.40

9.39r 9.43

(7)

6.70 4.50

6.66 4.63

7.75 6.25

7.39 5.83

7.70 6.59

9.42 6.42

10.38 6.65

10.27 6.68

11.50 7.75

9.18 7.40

6.52 6.52

6.43 6.38

6.56 6.65

6.54 6.61

7.75 7.75

6.44

6.80

6.68

6.82

6.75

6.45 6.29

6.86 6.82

6.74 6.64

6.77 6.73

6.76 6.75

June

6.89 7.36 7.60

6.29 6.41 6.73

6.96 7.28 7.53

6.70 7.02 7.20

6.84 7.20 7.66

July Aug. Sept.

7.81 8.04 8.45

7.01 7.08 7.85

7.79 7.73 8.01

7.47 7.36 7.95

Oct. Nov.

8.96 9.76

7.99 8.64

8.45 9.20

8.85 8.71 8.78 9.24

8.03 8.17 7.91 7.67

8.19 8.27 8.37 8.48

(1)

(3)

(4)

(5)

6.65 4.47

6.27 4.41

6.62 4.67

6.51 4.56

1978--High Low

9.87 6.58

8.98 6.16

9.32 6.55

1977--Nov. Dec.

6.51 6.56

6.10 6.07

1978--Jan. Feb. Mar.

6.70 6.78 6.79

Low

Apr.

May

1978--Oct.

4 11

18 25 Nov.

Dec,

8.35 8.85 8.38 8.36 8.98

1 8 15 22 29 6 13

() (10)

Home Mortgages rimary Secondar Market ConPry FNMA GNMA Sec.

11)

(6)

(2)

1977--High

20-yr

.ong-Term Corp.-Aaa Mun p Utility Munil N ew Recently Bod Offered yAuc. ( sue

(FR)

(8)

9.87 9.79

8.93 8.90

9.29 9.27

9.22 9.26

10.25 10.38

10.25 10.27

11.50 11.50

9,12 9.18 p

8,86 8.94p

8.79 8.85p

9.80 83 9. p

8.90 8.90

9.32 9.25

10.25 10.30

11.50 11.50

9.13 9 9.1 p

8.89 6 8.9 p

8.79 8 8 . 7p

9.28 9.30p

9.98

10.27

20 27 Daily--Dec.

NOTE: Weekly data for columns 1, 2, 3, 6, and 7 are statement week averages of daily data. Weekly data in column 4 are average rates set in the auctions of For columns 8 through 6-month bills that will be issued on the Thursday following the end of the statement week. Data in column 5 are 1-day Wednesday quotes. 11, the weekly date is the mid-point of the calendar week over which data are averaged. Columns 12 and 13 are 1-day quotes for Friday and Thursday, respectively, following the end of the statement week. Column 14 is an average of contract interest rates on commitments for conventional first mortgages with 80 per cent loan-to-value ratios made by a sample of insured savings and loan associations on the Friday following the end of the statement week. Column 15 gives FNMA auction data for Monday preceding the end of the statement week. Column 16 is a 1-day quote for Monday preceding the end of the statement week. The FNMA GNMA yields are average net auction yield is the average yield in bi-weekly auction for short-term forward commitments for Government underwritten mortgages. yields to investors on mortgage-backed securities for immediate delivery, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the coupon rate 50 basis points below the current PHA/VA ceiling.

DEC. 15, 1978

Appendix Table 1-A

Money and Credit Aggregate Measures Bank Reserves

Period

Total NonTotaborrowed

Money Stock Measures

Bank

Monetary Base

Total Loans and Invest-

M-2

ments 1

1975 1976 1977

M-3 C.

M-4 C-

M-5 I.

M-6

5 0 I o (PER CENT ANNUAL RATES OF GROWTH)

-0.6 0.7 5.3

2.6 0.8 3.1

5.6 6.7 3.3

3.9 8.0 11.3

4.6 5.8 7.9

6.8 12.6 9.3

8.4 10.9 9.8

11.1 12.8 11.7

6.6 7.1 10.1

9.7 10.3 11.8

10.5 9.9 11.6

9.8 10.0 11.6

2/ SEMI-ANNUALLY: 1ST HALF 2NO HALF

1977 1977

3.8 6.8

3.2 2.9

1.3 9.0

11.3 10.7

7.8 7.8

1.8 7.4

10.1 9.1

11.4 11.4

9.4 10.3

10.8 12.1

10.2 12.3

10.4 12.2

1ST HALF

1978

7.8

9.0

12.7

8.1

5.9

7.4

7.8

10.3

9.5

10.9

OTR.

1977

7.5

8.2

9.6

9.5

6.6

4.7

7.2

9.3

11.5

11.8

12.0

12.7

1ST jTR. 2ND QTR. 3RD QTR.

1978 1978 1978

6.3 11.5 4.6

8.9 3.7 5.0

8.0 10.4 8.5

10.4 17.0 8.7

5.2 11.5 9.2

4.3 7.7 7.5

6.5 8.8 10.4

7.0 8.4 11.8

9.6 10.0 10.0

8.9 9.2 11.5

d.9 9.1 10.8

10.5 10.2 10.8

QUARTERLY:

4rH

QUAKTERLY-AV: 4TH 3TR.

1977

6.3

J.8

9.0

9.9

7.5

0.8

8.1

LO.6

10.8

12.2

12.7

IST QTR. 2ND QTR. 3RD QTR.

1978 1978 1978

8.8 6.6 8.2.

14.4 1.1 62

9.7 8.1 9.0

10.1 14.9 10.8

6.2 9.9 7.6

4.9 6.9 5.3

6.9 7.9 8.9

1.7 7.8 10.1

10.3 10.1 8.8

9.8 9.1 9.9

9.9 8.9 9.0

11.3 10.2 9.4

6.2 6.7

20.7 16.1

8.3 10.5

9.2 6.3

1.1 8.2

0.4 5.4

6.0 6.1

8.1 7.9

11.8 9.9

11.5 10.1

12.1 9.7

12.8 11.0

14.8 10.6 -6.6 8.9 10.2 14.9 14.0 -8.2 8.1 7.6 -4.2

17.8 13.2 -4.3 2.0 -9.6 19.0 7.6 -3.2 10.7 1.3 12.8

13.4 6.9 3.4 7.7 12.0 11.1 8.5 4.2 12.6 8.9 6.1

14.4 8.5 7.9 19.9 16.6 13.7 11.0 5.1 9.7 9.8 6.5

11.3 0.4 3.9 19.6 7.2 7.5 4.8 8.5 14.1 3.7 -4.6

9.4 0.8 2.5 13.6 5.4 4.0 1.5 8.7 12.2 1.8 -7.1

9.5 4.7 5.1 11.2 7.1 7.8 8.0 10.4 12.5 7.0 4.3

9.2 5.6 6.2 9.5 7.2 8.4 9.4 11.7 14.0 10.0 6.8

11.8 8.5 8.3 11.9 11.2 6.6 8.Z 8.0 13.7 6.4 12.9

10,6 7.9 8.0 10.2 9.6 7.6 9.4 10.2 14.6 9.5 12.0

11.3 7.8 7.4 10.2 9.7 7.2 7.6 9.2 15.4 7.9 11.2

12.7 9.4 9.0 11.4 10.7 8.2 8.0 8.9 15.0 7.9 11.1

MONTHLY: 1977--NOV. DEC. 1978--JAN. FE8. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. P 1/ 2/ P -

BASED ON DATA ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS. BASED ON QUARTERLY AVERAGE DATA. PRELIMINARY

DEC.

Appendix Table 1-B

15,

1978

Money and Credit Aggregate Measures Seasonally Adjusted, Billions of Dollars Bank Reserves -1B Period

Total

borrowed borrowed

Monetary Base Base

Non-

Money Stock MeasureB Money Stock Measures

Credit Total Loans and and Investments 4

M-1

M-l+

M-2

M-3

M-4

M-5

M-6

M-7

ANNUALLY: 36,643 37,050 38,961

36,513 36,996 38,391

113,019 120,671 130,789

726.2 788.9 875.5

295.2 313.5 338.5

456.4 516.8 560.2

664.7 740.5 809.5

1092.5 1236.5 1376.1

746.1 803.2 883.5

1173.8 1299.2 1450.1

1307.4 1437.6 1604.3

1350.7 1485.4 1660.5

1977--MOV. DEC.

38,744 38,961

37,882 38,391

129,650 130,789

870.9 875.5

336.2 338.5

557.7 560.2

805.4 809.5

1367.1 1376.1

876.3 883.5

1438.0 1450.1

1591.4 1604.3

1645.4 1660.5

1978--JAN. FEB. MAR.

39,443 39,793 39,573

38,959 39,387 39,245

132,252 133,017 133,390

886.0 892.3 898.6

341.7 341.8 342.9

564.6 565.0 566.2

815.9 819.1 822.6

1386.6 1393.1 1400.3

892.2 898.5 904.7

1462.9 1472.5 1482.3

1619.4 1629.9 1639.9

1678.1 1691.3 1704.0

APR. MAY JUNE

39,868 40,208 40,706

39,311 38,936 39,612

134,251 135,596 136,854

913.5 926.1 936.7

348.5 350.6 352.8

572.6 575.2 577.1

830.3 835.2 840.6

1411.4 1419.9 1429.8

913.7 922.2 927.3

1494.9 1506.9 1516.5

1653.8 1667.1 1677.1

1720.2 1735.5 1747.4

JULY AUG. SEPT.

41,180 40,897 41,172

39,863 39,757 40,112

137,822 138,302 139,750

945.3 949.3 957.0

354.2 356.7 360.9

577.8 582.0 587.9

846.2 853.5 862.4

1441.0 1455.1 1472.1

933.6 939.8 950.5

1528.4 1541.4 1560.2

1687.7 1700.6 1722.4

1759.1 1772.2 1794.4

41,434 41,289

40,156 40,586

140,782 141,501

964.8 970.0

362.0 360.6

588.8 585.3

867.4 870.5

1484.4 1492.8

955.6 965.9

1572.5 1588.2

1733.8 1750.0

1806.2 1822.9

11 18 25

41,533 41,520 41,218

40,294 40,270 39,904

140,424 140,918 140,538

364.3 364.3 358.8

591.6 591.1 585.3

869.4 869.3 865.2

955.8 956.2 954.1

NOV.

1 8 15 22P 29P

41,310 41,304 41,049 41,361 41,397

40,005 40,606 40,416 40,757 40,606

141,361 140,927 141,072 141,769 142,155

361.2 362.3 361.4 359.3 358.7

586.9 58d.1 586.7 583.7 582.6

868.2 870.9 870.9 870.1 869.2

960.0 964.9 966.3 966.3 965.6

DEC.

41,576

40,878

142,215

360.7

584.4

872.1

968.2

1975 1976 1977

MONTHLY:

OCT. NOV.

WEEKLY:

1978-OCT.

WEEKLY DATA ARE NOT MONTHLY DATA ARE DAILY AVERAGES. WEEKLY DATA ARE DAILY AVERAGES FOR STATEMENT WEEKS. M3, MS, M6, M7, TOTAL LOANS AND INVESTMENTS AND THRIFT INSTITUTION DEPOSITS. 1/ BASED ON DATA ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS. DATA SHOWN IN MILLIONS OF DOLLARS. P PRELIMINARY

NOTES:

AVAILABLE

DEC.

APPENDIX TABLE 2-A

15,

1978

COMPONENTS OF MONEY STOCK AND RELATED MEASURES Period

5 6 7 8 (Per cent annual rates of growth)

2/ ANNUALLY: 1975 1976 1977

7.9 8.0 11.4

11.7 15.0 11.2

17.5 25.0 11.1

7.8 7.4 11.4

-6.4 -23.4 12.8

15.3 15.5 14.2

19.5 18.8 19.4

33.6 7. 1 12.6

-7.0 11.9 13.4

8.9 13.3

0.6 24.9

12.9 14.5

16.6 20.6

2.6 22.3

15.9 10.1

SEMi-ANNUALLY: 1ST HALF 1977 2Nj HALF 1977

8.7 9.8

7.4 7.1

10.4 11.8

11.9 10.0

15.3 6.4

1ST HALF

9.6

7.7

11.7

6.9

2.1

11.1

43.5

7.6

17.4

12.0

51.9

1977

10.7

5.4

14.5

7.7

1.5

13.5

64.0

11.6

18.8

23.5

32.2

1ST QTR. 1978 2NO QTR. 1978 3RD QTR. 1978 QUARTERLY-AV:

9.5 9.3 10.3

3.8 12.0 8.9

12.3 9.1 10.6

7.4 6.8 11.3

2.6 1.3 4.5

11.5 11.4 17.0

43.2 22.9 6.5

6.9 7.3 13.8

17.9 14.7 15.0

11.3 9.5 3.4

55.4 39.3 9.1

4TH QTR.

1977

10.3

6.4

13.0

8.5

5.4

11.6

44.9

13.9

20.0

29.7

12.9

1ST QTR. 1978 2ND QTR. 1978 3RD QTR. 1978

10.5 8.4 9.6

5.0 10.3 7.0

12.8 10.1 9.5

7.3 6.4 10.0

2.6 1.6 1.3

11.4 10.5 17.3

50.0 32.8 7.5

8.1 6.8 11.4

18.2 15.8 13.6

16.2 7.5 -3.0

52.3 45.6 19.3

1977--NOV. DEC.

8.3 12.3

-1.0 6.8

18.5 10.9

9.5 4.6

-1.1 1.1

18.0 8.7

81.3 52.5

11.0 9.5

15.8 18.2

25.4 7.8

31.9 51.1

1978--JAN. FEB. MAR. APR. MAY JUNF JULY AUG. SEPT. OCT. NOV. P

10.8 9.4 8.0 6.6 11.8 9.1 6.5 9.0 15.3 10.1 10.0

11.0 -2.4 2.9 23.8 5.6 6.5 4.6 8.7 13.2 1.8

12.3 13.3 10.8 7.5 13.6 6.1 10.2 7.5 13.8 7.9 23.7

8.4 7.6 6.0 5.3 6.7 8.2 10.3 11.5 11.8 9.1 10.7

6.0 1.1 0.5 3.3 2.2 -1.6 -4.3 8.1 9.7 -1.6 -10.7

10.0 13.2 10.8 6.5 11.5 16.0 22.5 14.2 13.6 17.7 28.1

37.3 48.8 39.3 20.5 53.2 -5.5 9.7 -15.1 25.0 1.4 98.0

7.8 6.2 6.6 6.6 6.8 8.5 11.1 14.4 15.5 14.9 10.9

17.9 15.2 20.0 14.7 12.1 16.8 11.8 11.7 20.9 6.8 4.5

29.4 9.1 -4.5 13.5 13.4 1.5 -23.5 -7.5 42.2 -17.5 4.4

51.2 55.2 52.8 43.1 34.3 36.9 17.0 3.4 6.7 6.7 8.3

1978

QUARTERLY: 4TH OTR.

MONTHLY:

aII

-10.4 I II--- a

GROWTH RATES ARE BASED ON ESTIMATED MONTHLY AVERAGE LEVELS PREVIOUS MONTH REPORTED DATA. 2/ BASED ON QUARTERLY AVERAGE DATA. P - PRELIMINARY.

I *-

DERIVED BY AVERAGING END OF CURRENT MONTH AND END OF

APPENDIX TABLE 2-B

DEC. 15,

1978

COMPONENTS OF MONEY STOCK AND RELATED MEASURES Time and Savings Deposits Currency Demand Deposits

Period

Mutual Bank & S&L

Savings

Other Than CD's

Total

Credit

Union Savings Shares Bonds 1_

Sharesi

ShortTerm U*g Govt Sec

Other Private

Non-

Total

34.4 51.0 62.0

9.5 12.6 13.0

Shortterm Assets

Total

Savings

Other

160.5 201.9 219.6

209.1 225.1 251.5

81.3

394.9 456.9 519.8

33.0 39.1 46.8

67.2 71.9 76.6

66.3

74.0

77.6

43.3 47.8 56.3

Gov't Deposit Funds Demand Deposts

73.7 80.7 88.6

221.5 232.8 249.9

450.9 489.7 545.0

MONTHLY: 1977--NOV. DEC.

87.7 88.6

248.5 249.9

540.1 545.0

469.2 471.0

219.4 219.6

249.7 251.5

70.9 74.0

515.7 519.8

46.1 46.8

76.2 76.6

77.1 77.6

54.0 56.3

60.1 62.0

8.0 13.0

1978--JAN. FEB. MAR.

89.4 90.1 90.7

252.2 251.7 252.3

550.6 556.7 561.7

474.3 477.3 479.7

220.7 220.9 221.0

253.6 256.4 258.7

76.3 79.4 32.0

523.2 525.9 528.8

47.5

77.0 77.4 77.8

79.5

48.9

80.1 79.8

50.7 61.4 64.1

64.9 65.5 65.4

10.8 8.5 9.1

APR. MAY JUNE

91.2 92.1 92.8

257.3 258.5 259.9

565.2 571.6 574.5

481.8

221.6

484.5 487.8

222.0 221.7

260. 262.6 266.1

83.4 87.1 86.7

531.7 534.7 538.5

49.5 50.0 50.7

78.2 78.6 78.9

80.7 81.6 81.7

66.4 68.3 70.4

65.7 66.2 66.4

9.6 8.2 12.9

JULY AUG. SEPT.

93.3 94.0 95.2

260.9 262.8 265.7

579.4 583.0 589.7

492.0 496.7

271.1 274.3 277.4

87.4 86.3 88.1

543.5

550.0 557.1

51.2 51.7 52.6

79.3 79.5 79.8

80.1

501.6

220.9 222.4 224.2

82.4

71.4 71.6 72.0

66.7 68.8 69.8

15.5 16.1 17.4

OCT. NOV.P

96.0 96.8

266.1 263.8

593.6

505.4 509.9

223.9 221.9

281.5 288.1

88.2 95.4

564.0 569.1

52.9 53.1

80.1 80.3

81.2 81.5

72.4 72.9

74.9

73.2

21.2 21.7

11 18 25

95.7 96.0 95.8

268.5 268.3 263.0

591.5 592.0 595.3

505.1 505.0

224.5 224.0 223.7

280.7 281.0 282.6

86.4

87.0 89.0

71.6 74.3 76.6

21.4 24.1 22.0

1 8 15 22P 29P

96.5 96.4 96.6 96.9 97.0

264.6 265.9 264.8 262.4 261.7

598.9 602.6 604.9 607.0 606.9

507.1 509.5 510.7 510.5

222.9 222.9 222.4 221.5 221.1

284.2 285.7 287.1 289.2 289.5

91.8 94.0 95.4 96.3 96.4

79.8 73.4 68.2 72.2 76.3

19.6 22.1 20.4 23.1 23.5

97.2

263.5

607.5

511.5

220.9

290.6

96.1

ANNUALLY: 1975 1976 1977

605.3

369.6

427.0 471.0

62.7

48.1

66.5

79.6

WEEKLY: 1978-0CT.

NOV.

DEC.

I / 2/

3/ 4/ P -

506.3

508.6

ESTIMAE MUNHLY AVERAGE LEVELS DE RIVED BY AVERAGING END OF CURRENT MONTH AND END OF PREVIDUS MONTH REPORTED DATA. INCLUDES PRIVATE DOMESTIC NONFINANCIAL INVESTORS' HOLDINGS OF COMMERCIAL PAPER, BANKERS ACCEPTANCES, SFCUR17Y RP6S AND MONEY MARKET MUTUAL FUND SHARES. BORROWINGS BY BANKS FROM OTHER THAN COMMERCIAL BANKS IN THE FORM OF FEDERAL FUNDS PURCHASED, SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE, AND OTHFR LIABILITIES FOR BORROWED MONEY, PLUS GROSS LIABILITIES TO OWN FOREIGN BRANCHES (EURODOLLAR BORROWINGS), LOANS SOLD TO AFFILIATES, LOAN RPS, ANO OTHER MINOR ITEMS. INCLUDES TREASURY DEMAND DEPOSITS AT COMMERCIAL BANKS AND FEDERAL RESERVE BANKS AND TREASURY NOTE BALANCES. PRELIMINARY

17.0

Cite this document

APA

Federal Reserve (1978, December 18). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19781219

BibTeX

@misc{wtfs_bluebook_19781219,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1978},
  month = {Dec},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19781219},
  note = {Retrieved via When the Fed Speaks corpus}
}