bluebooks · August 13, 1979

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.

August 10,

Strictly Confidential (FR)

1979

Class I FOMC

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)

August 10, 1979

CLASS I - FOMC

MONETARY AGGREGATES AND MONEY MARKET CONDITIONS Recent developments (1) M-1 expanded at about a 10 percent annual rate in July and, though growth is apparently slowing markedly in August, for the two months it is still expected to be above the upper end of the 2½ to 6½ percent range specified by the FOMC. annual rate of about 11

M-2 growth over July and August is projected at an percent, also above the upper end of its FOMC range.

Savings deposits increased somewhat more rapidly in July than in June, after having declined almost without interruption over the preceding eight months. The time deposit component of M-2 continued to grow at about its strong second-quarter pace in July, as large time deposits included in M-2 increased for the first time since late last year.

Growth in small time

deposits remained strong by historical standards, but slowed from other recent months.

At thrifts, however, deposit expansion decelerated

from June's relatively strong pace. Comparison of FOMC Policy Ranges for July-August

to Latest Staff Estimates Ranges M-1

2½ to 6½

M-2

6½ to 10½

Federal funds rate (percent per annum)

1/ 9¾ to 10¾-

Latest Estimates 7.5 11.3 Avg. for statement week ending 10.28 July 11 18 10.35 25 10.63 10.75 Aug. 1 10.67 8

On July 27 the FOMC voted to raise the upper limit of the intermeeting range for the Federal funds rate from 10½ percent to 10 percent.

(2) With growth in loans slowing somewhat, commercial bank credit increased at a 12½ percent annual rate in July, below the average pace for the first half of the year.

Given the strong growth in demand

and consumer-type time and savings deposits last month, banks reduced reliance on managed liabilities to finance credit expansion.

In particular,

over the course of the month banks tapped their foreign affiliates for only a minimal additional amount of funds, reflecting a relative firming of interest rates in the Durodollar market associated with weakness in the dollar. (3) rate in the 10 FOMC meeting.

The Account Management continued to aim for a Federal funds percent area during the days immediately following the July On July 20, however, as projections suggested that over the

July-August period M-1 and M-2 would grow at rates moderately above and about equal to the upper limits of their respective short-run ranges, the Manager began to aim for a weekly average Federal funds rate at about the 10 percent upper limit specified by the Committee.

On the same morning the

Board announced an increase in the discount rate from 9½ percent to 10 percent.

On July 27, as projections suggested that growth in both M-1 and

M-2 over July and August would exceed the upper limits of their respective ranges, the Committee raised the upper limit of the intermeeting range for the Federal funds rate to 10¾ percent and instructed the Manager to aim for a rate within a range of 10

to 10¾ percent, depending on sub-

sequent behavior of the aggregates and conditions in

foreign exchange markets.

Initially, the Desk aimed for a rate around 10-5/8 percent. however,

Most recently,

with the aggregates continuing strong and with renewed pressure

on the dollar in foreign exchange markets following publication of the

July producer price index, the Desk has sought a funds rate a shade higher than 10-5/8 percent.

(4)

Total reserves, after declining at a 4 percent annual rate in

the first half of the year, are projected to expand at about an 8¼ percent annual rate in the July-August period as strengthening deposit flows have been accompanied by increases in required reserves.

Growth in the monetary

base is projected to rise at about a 10¼ percent annual rate over July and August as currency in circulation continues to expand at a brisk pace. (5)

Short-term interest rates have generally increased about 20

to 50 basis points since the July FOMC meeting, with the largest increases on private instruments.

Bond yields have changed little on balance over

the intermeeting period, however, as a light corporate and municipal financing calendar and widespread views that the economy is moving into recession have tended to damp reactions to the System's policy actions. Against this general background, the Treasury offerings of $2.75 billion of 3-year notes, $2.5 billion of reopened 7 -year notes, and $2 billion of reopened 29 -year issues--to refund $4.8 billion of maturing issues and raise $2.4 billion of new money--were well bid for in their respective auctions.

The two shorter issues are currently trading at or close to their

average prices in the auction, after having been at premiums in the days immediately after the offering, while the longer issue is now at a significant discount.

Average primary market rates on conventional home loans

have edged down a few basis points, perhaps reflecting some slackening in housing credit demand and the attraction of diversified investors to this market by the wide spread between mortgage and bond yields. (6)

The dollar was under heavy selling pressure the first two

weeks following the July FOMC meeting, reflecting market participants' apprehension over the course of U.S. economic policy, particularly in the wake of the Cabinet reshuffle.

These pressures abated with the naming

-4of the new Federal Reserve Chairman, but pressures have resumed in recentdays as noted in paragraph (3). has purchased $2

(7)

Since the last FOMC meeting the United States

billion in support of the dollar,

The table on the next page shows seasonally adjusted annual

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

1977 & 1978 Average

Past Twelve Months July '79 over July '78

Past Six Months July '79 over Jan. '79

Past Three Months July '79 over Apr. '79

Past Month July '79 over June '79

Nonborrowed reserves

4.9

-0.3

-4.1

-0.8

19.9

Total reserves

6.0

-0.7

-3.2

1.7

11.9

Monetary base

8.7

6.7

4.9

6.7

10.9

M-1 (Currency plus demand deposits 1/)

7.6

5.0

6.9

8.6

10.1

M-1+ (M-1 plus savings deposits at commercial banks, NOW accounts at banks and thrift institutions, credit union share draft accounts, and demand deposits at mutual savings banks)

7.3

2.5

3.9

6.6

10.0

M-2 (M-1 plus time deposits at commercial banks other than large CD's)

9.1

7.7

8.9

10.9

12.7

M-3 (M-2 plus deposits at thrift institutions)

10.5

8.4

8.3

9.2

10.6

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

10.3

6.6

4.8

5.6

11.4

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

11.1

7.7

5.8

6.1

Month-end basis

11.9

12.5

12.1

13.6

Monthly average

12.1

12.8

11.9

12.1

8.3

Large CD's

1.4

-0.3

-2.6

-3.4

-0.2

Nonbank commercial paper

0.3

0.6

0.9

0.8

1.1

Concepts of Money

9.9

Bank Credit Loans and investments of all commercial banks 2/ 12.5

Short-term Market Paper (Monthly average change in billions)

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.

Prospective developments (8)

The table

below presents for the Committee's consideration

three alternative specifications for the monetary aggregates and the Federal funds rate for the August-September period.

The Federal funds rate

specifications of alternative B are centered on the currently prevailing 10½ to 10¾ percent range.

Alternatives A and C would ease or tighten,

respectively, money market conditions in coming weeks.

(More detailed

and longer-term data are contained in the tables on pages 7 and 8.) Alt. A

Alt. B

Alt. C

M-1

5½ to 9½

5 to 9

4½ to 8½

M-2

8½ to 12½

8 to 12

7½ to 11½

9¾ to 10½

10¼ to 11

Ranges for August-September

Federal funds rate (intermeeting period) (9)

to 11½

Under alternative B, M-1 would be expected to expand in a

5 to 9 percent annual rate range over the August-September period.

This

would represent a noticeable deceleration from the 11 percent average pace of the preceding four months, but would still leave M-1 growth for the current quarter at

a 9 percent annual rate.

With nominal GNP projected

to rise at a 7 percent rate, velocity would decline by about a 2 percent annual rate, following a 1

percent decline in the second quarter.1/ Because of

the lags that ordinarily characterize the public's adjustment of its cash balances to changes in economic circumstances, some weakening in velocity would have been expected in light of the sharp deceleration of nominal GNP growth

These figures somewhat understate the weakness in velocity since the shifting of demand deposits to ATS/NOW accounts is estimated to have depressed M-1 growth--and raised velocity--by about 1¼ percentage points in the second quarter, and is expected to have about ¾ percentage point impact in the current quarter. Quarterly velocity figures are shown in Appendix I.

Alternative Levels and Growth Rates for Key Monetary Aggregates M-1 1/ Alt. A

Alt. B

Alt. C

Alt. A

Alt. B

Alt.

1979

July August September

372.1 373.7 376.8

372.1 373.6 376.5

372.1 373.5 376.2

914.0 921.8 929.9

914.0 921.5 929.2

914.0 921.2 928.5

1978

QIV

361.0

873.2

1979

359.1 365.9 374.2 378.0

359.1 365.9 374.1 378.0

359.1 365.9 373.9 378.0

877.1 896.0 921.9 939.4

877.1 896.0 921.6 939.2

877.1 896.0 921.2 939.0

QII QIII QIV Growth Rates Monthly: 1979

August September

5.2 10.0

10.2 10.5

9.8 10.0

1.8 8.6 11.6 7.6

1.8 8.6 11.4 7.6

1.8 8.6 11.3 7.7

7.6

7.5

Quarterly Average: 1979

QI QII

QIII QIV

-2.1 7.6 9.1 4.1

-2.1 7.6 9.0 4.2

-2.1 7.6 8.7 4.4

Semi-Annual: QIV '78-QII '79 QII '79-QIV '79 Annual: QIV '78-QIV '79 1/

The staff has assumed that over the longer-run policy period from QIV '78 to QIV '79 M-1 growth will be reduced by about 1¾ percentage points by ATS.

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

Bank Credit

Alt. A

Alt. B

Alt. C

Alt. A

Alt. B

Alt. C

1979

July August September

1566.0 1576.8 1589.0

1566.0 1576.4 1588.0

1566.0 1576.0 1587.0

1058.6 1066.8 1074.8

1058.6 1066.5 1074.1

1058.6 1066.4 1073.8

1978

QIV

1492.7

978.7

1979

QI QII

1510.3 1540.0 1577.3 1607.8

1510.3 1540.0 1576.8 1607.3

1510.3 1540.0 1576.3 1606.9

1009.8 1037.4 1066.7 1089.9

1009.8 1037.4 1066.4 1088.8

1009.8 1037.4 1066.3 1087.9

8.3 9.3

8.0 8.8

7.7 8.4

9.3

9.0

8.8

9.0

8.6

8.3

QIII

QIV Growth Rates Monthly: 1979

August September

Quarterly Average: 1979

QI QII QIII QIV

12.7

10.9 11.3 8.7

10.9

12.0 10.1

12.0

11.4

11.2

11.2 8.4

Semi-Annual: QIV '78-QII '79 QII '79-QIV '79

9.9

12.0

9.7

Annual:

QIV '78-QIV '79

7.7

11.2

-9in the spring.

However, the continued strength

of M-1 suggests the

possibility of a precautionary accumulation of liquid balances in

response to unusual economic uncertainties.

Such a pattern would not

be expected to persist for an extended period, and the staff anticipates a return to somewhat weaker demands for M-1 over the remainder of the year--although not to the marked weakness observed in the past fall and winter.

(10)

Under alternative B, M-2 growth is projected to expand at

about a 10 percent annual rate during the August-September period, a somewhat slower growth rate than in June and July.

In addition to the

slowing in growth of the M-1 component, it is unlikely that savings deposits will continue to expand at their recent rate, given the high level of market interest rates.

Nonetheless, growth in small time deposits should

remain brisk, with banks continuing to attract a substantial amount of MMC deposits in the absence of an inter-institutional ceiling rate differential. (11)

As shown in the upper panel of the chart on page 10,

under alternative B M-1 in September would be above the level implied by the upper end of the Committee's 1½ to 4½ percent growth range for the QIV '78 to QIV '79 period.

This would also be true under alternatives A and C.

indicated in

the lower panel of the chart, if the longer-run

However,

as is

range is

adjusted to reflect the downward revision in the staff's estimate

of the ATS/NOW effect from the original 3 percent to the current 1

percent,

the projected September level (under alternative B) is within, though in the upper half, of the adjusted 3 to 6 percent range.

For M-2, growth indicated

by the alternative B range would place the aggregate in September well into the upper half of the 5 to 8 percent range established by the Committee for the period QIV '78 to QIV '79.

Growth Ranges and Actual M-1 LONGER-RUN RANGE REFLECTING 3 PERCENTAGE POINT IMPACT FROM ATS ASSUMED IN FEB. '79

Billions of dollars 385

Alt.B Short-Run Range

Q4 '78-Q4 '79 S9% <'«^4/,

380

. 4 V2%

-,-"

-375

S370

1%% 365

LONGER-RUN RANGE REFLECTING 1% PERCENTAGE POINT IMPACT FROM ATS AS CURRENTLY ASSUM ED 385 Q4 '78-Q4 '79 Aft B Short-Run Range ---

380 *

S5%

^'''

-r'

^---"

375

.---

370

365

360

355

N 1978

__~I

i, A

I J

_1i

I S

1979

9%-

350 0

N-

Growth Ranges and Actual M-2 and M-3

M-2 Current Longer-Run Range ----Alt. B Short-Run Range -

Bilions of dollars 950

Q4 '78-Q4 '79 ,

8% S

940

12% //

-930 8%

- 920

910

900

-890

-880

-870 I

860

M-3 Current Longer-Run Range ----Alt. B Short-Run Range--

1640

Q4 '78-Q4 '79

1620

1600

-6%

1580

1560

1540

1520

1500

1978

1979

1 1

1480

-12(12)

The table on page 13 indicates the annual rates of growth

of M-1 and M-2 required to reach the high ends, low ends, and midpoints of their respective longer-run ranges within certain periods.

It may be noted

that, assuming ATS retards M-1 growth by 1½ percentage points over the year, M-1 would need to rise at a 4.1 percent annual rate between July and the fourth quarter to hit the midpoint of its longer-run range.

Growth

in M-2 would have to be at a 5.3 percent annual rate over the same period to achieve the midpoint of its longer-run range. (13)

With Federal funds continuing to trade around 10½ to 10¾

percent, the midpoint of alternative B, other interest rates would likely change little in the near term.

Credit markets are not likely to be

subject to demand pressures over the next few weeks.

The Treasury's

net borrowing activities during the intermeeting period may be limited to an early September cash management bill to carry it through the mid-month tax date, although the sale of a 5-year note is a possible alternative. Market participants likely will be focusing more on the greater cash needs confronting the Treasury in the fourth quarter.

The forward calendars

in the corporate and municipal bond markets are moderate.

Loan demands

at commercial banks may edge off, as inventory investment declines and household spending continues weak.

Use of bank credit lines, and there-

fore bank demands on the money markets, could be increased, however, by any adverse developments in the commercial paper market associated with the Chrysler situation.

At thrift institutions, growth of deposits subject to

rate ceilings likely will remain sluggish, leading to continued borrowing from Home Loan Banks and market sources.

Growth Rates from July Levels Required to Achieve Levels Implied by FOMC Longer-run Ranges for M-1 and M-2 (Seasonally adjusted annual rates) Low End of Range

Midpoint of Range

High End of Range

M-1 (3 percent ATS/NOW impact on M-1)

Achieve level by: September 1979 (in 2 months) QIV '79 (end of longer-run period)

-10.6

-4.6

-3.4

3.9

-0.2

4.1

M-1 (1½ percent ATS/NOW impact on M-1)

Achieve level by: September 1979 (in 2 months)

-3.4

3.9

11.3

QIV '79 (end of longer-run period)

-0.2

4.1

8.5

M-2

September 1979 (in 2 months) QIV '79 (end of longer-run period)

-2.9

11.4

5.3

9.6

-14(14)

Alternative A involves a decline in the Federal funds rate

to the midpoint of a 9-3/4 to 10-1/2 percent range.

Growth in M-1 and M-2

over the August-September period would likely be in annual rate ranges of 5-1/2 to 9-1/2 and 8-1/2 to 12-1/2 percent, respectively.

Other short-

term market rates could decline rather considerably, since the market at present does not expect an easing in the System's posture.

Given the

recent data on inflation and unemployment, and the prevailing state of expectations regarding monetary policy, such a movement in domestic rates would likely lead to an appreciable weakening of the dollar on foreign exchange markets.

Purchases of Treasuries by foreign official institutions

associated with any substantial intervention activity might result in relatively larger declines in Treasury bill rates than in private rates. In long-term debt markets, bond yields would probably also decline, though such tendencies would be limited if an easing in the funds rate were to strengthen inflationary expectations.

Thrift deposit flows would benefit

from the decline in market rates, especially if bill yields fell enough to reopen a ceiling rate differential, and mortgage rates might edge downward. (15) Alternative C calls for an increase in the Federal funds rate to the midpoint of a 10-3/4 to 11-1/2 percent range.

Over the August-

September period, M-1 probably would grow in a 4-1/2 to 8-1/2 percent annual rate range and M-2 between 7-1/2 and 11-1/2 percent.

A further

tightening action at this juncture would reinforce the view that the Federal Reserve is giving relatively heavy weight to domestic inflation and the performance of the dollar abroad in formulating its policies.

The dollar likely would strengthen on foreign exchange markets, and while a rise in short-term rates could be anticipated, bond yields might increase rather little, if at all.

Given the already wide spread between bond

yields and mortgage rates--and the minor impact of the assumed short-term rate increase on thrift institution deposit flows--mortgage rates probably might increase only moderately. (16)

As noted in paragraph (9), the staff currently expects

that the public's demand for M-1 will be significantly weaker over the remainder of the year than it has been in recent months.

Given the out-

look for nominal GNP, and assuming that the Committee adopts short-run alternative B, the projected behavior of money demand would permit a decline in the Federal funds rate to around 9-1/2 percent by year-end with M-1 growth for the QIV '78 to QIV '79 period ending up close to the midpoint of the longer-run range (of 3 to 6 percent, assuming 1-1/2 percent ATS adjustment).

However, should the public's demand for M-1 not exhibit

the anticipated weakening, M-1 growth might be well into the upper half of the longer-run range even if the funds rate were held at its current level.

-16-

Directive language (17)

Given below are suggested operational paragraphs for

the directive in the customary form, with alternative language related to the short-run specifications presented in the preceding section. Alternative language is also provided for placing main emphasis either on monetary aggregates or 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 [DEL: the program exchange value of the dollar and FOREIGN EXCHANGE AND

for

supporting

the foreign

to] developing conditions in

domestic financial markets.

Early in the

period before the next regular meeting, System open market operations are to be directed at maintaining the (or ATTAINING A) weekly average federal funds rate (A) (B) (C)

SLIGHTLY BELOW THE CURRENT LEVEL. at about the current level. SLIGHTLY ABOVE THE CURRENT LEVEL.

Subsequently,

operations shall be directed at maintaining the

1/ weekly average federal funds rate within the range of 9¾-to-10¾ ____ TO ____

percent.

In deciding on the specific objective

for the federal funds rate the Manager shall be guided mainly by the relationship between the latest estimates of annual rates of growth in the July-August AUGUST-SEPTEMBER period of M-1 and M-2 and the following ranges of tolerance: 2½-to-6½ ____ TO ____ 10½ percent for M-1 and 6½to

____ TO ____ percent for M-2.

rates of growth of M-1 and M-2, given approximately equal weight,

On July 27, the Committee voted to raise the upper limit of the range from 10½ percent to 10¾ percent.

-17-

appear to be Monetary aggregates emphasis SIGNIFICANTLY ABOVE OR BELOW THE MIDPOINTS Money market emphasis close to or beyond the upper or lower limits of the indicated ranges, the objective for the funds rate is to be

raised or lowered in an orderly fashion within its range. If the rates of growth in the aggregates appear to be beyond

the upper or lower 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 shall promptly notify the Chairman, who will then decide whether the situation calls for supplementary instructions from the Committee.

Appendix I Implied Velocity Growth Rates Alt. C

Alt. B

Alt. A

V-1 (GNP/M-1) 1979

QI QII QIII QIV

12.3 -1.4 -2.3 4.1

( 9.7) (-2.8) (-3.1) ( 3.5)

12.3 -1.4 -2.1 4.0

( 9.7) (-2.8) (-3.0) ( 3.5)

12.3 -1.4 -1.9 3.8

V-2 (GNP/M-2) 1979

Note:

QI QII

8.3 -2.4

QIII

-4.6

-4.5

-4.3

QIV

0.6

0.5

Figures in parentheses reflect V-1 without ATS.

( 9.7) (-2.8) (-2.7) ( 3.7)

AUG. 10,

Table 1

1979

Money and Credit Aggregate Measures P Period Total

Blank ReeLrves Bai MR

Bask Credit

.ro Honborrowed

Total Loans and Invest-

Monetary Base

MItne

M-1

M-1+

ments s

M-2

Stock Measures

M-3

(PER CENT ANNUAL

IATES OF

M-4

M-5

M-7

GROWTH)

21 ANNUALLY:

1976 197 1978

0.6 5.3 6.6

0.8 3.0 6.7

6.7 8.3 9.1

8.0 11.3 12.4

5.8 7.9 7.2

7.6 5.5

7.6 5.6

8.8 9.0

12.7 11.3

8.0 6.1

-3.9

-6.0

4.9

12.7

1978 1971

6.2 0.5

6.7 2.4

9.8 7.3

Is OQTR.1979 24n QTR. 1979 QUIRTERLYV-AV

-4.4

3R0 QT.O 1978 471T rt. 197I

8.6 2.3

12.6 9.3 5.4 1

10.9 9.8 4

12.7 11.7 9.3

7.1 0.1 10 10

10.2 9.9 11.7 11.5 .5 105.2

9.9 11.6 11.4

6.2 4.4

7.7 8.8

8.3 9.9

10.6 9.T

10.0 10.4

2.7

-0.7

5.2

6.3

4.0

5.5

7.0

11.1 7.8

9,3 0.6

7.5 -1.6

10.9 4.7

11.4

10.7 7.7

11.3 ,'

10.9 8.4

4.2 4.7

14.1 14.0

-2.4 11.1

-5.2 7.1

1.7 11.3

4-6 9.2

2.5 4.4

5.0 5.1

6.2 6.9

6.6 4.6

9.3 1.4

11.8 10.6

1.9 4.1

6.1 2.7

9.8 7.6

10.3 9.3

9.9 9.3

10.4 10.2

9.7 9.7

-2.9

-3.3

S.7

13.1

6.2

7.1

4.0

11.8

7.6

1.8 8.6

4.5

-8.8

-5.0 3.6

4.7

-4.9

7.9

3.5

4.8

6,8

14 8 -5.0 8.6 5.1 -3.6 -0.1

0.5 0.2 11.3 -1.2 13.4 -4.9

10.6 5.2 13.5 s.0 5.7 7.9

L0.1 7,6 1S.1 10.3 12.7 0.6

6.5 7.8 13.5 1.7 -2.0 2.0

3'1 7.2 L2.1 0.5 -4.3 -1.2

8.5 11.2 12,8 6.4 4.8 2.9

9.5 11.2 13.3 8.7 4.7 5.6

9.4 9.6 12.7 5.9 12.9 4.1

10.0 10.3 13.Z 8.3 11.6 6.1

8.4 9.8 14.1 7.2 10.0 7.9

9.0 9.7 13.9 B.5 12.7 11.2

6.0 -21.0 1.8 -4.9 T4.9 -1.8 11.9

2-2 -20.6 1.3 -2.9 -34.6 8.9 19.9

0.6 -0.5 4.6 4.9 3.1 6.1 10.9

25.3 10. 5.8 13. 12.1 15.7 12.5

-5.0 -3. 1.3 17.7 0.7 14.8 10.1

-7.8 -6.0 -1.0 11.4 -2.3 L2.1 10.0

-1.1 2.3 3.8 14.1 5.4 14.2 L2.7

2.9 4.8 6.2 10.5 4.9 11.9 10.9

3. 4.1 -0.4

5.6 5.7 3.5 7,0 1.3 7.1 10.z

6.5 6.1 6.0

9.0

21 SE I-A'+HUAL

1ST HALF 1978 2ND HALF 1978 1ST HALF 1979

10.0 9.8

11.3 I0.a 9.6

QUARTFRLY:

3RD OTR. 4T1 QT4.

-5.7 -8.2

-3.9

IST QT. 199 QTR. 1979

21N

-2.1

-7.1

11.0

10.S e.6 9.5 10.2

11.1 9.7 9.2

IOUNTHLY : l978-JUaL AUG. SEPT. CT.

WV,

DEC 1979- JAf, FEB. 4P. APR.

MAY

JUNE JULY P l

BaE-

DATA ADJUSTED

FOR CHANGES

1N RESERVE

REQ'URENENTS.

BA UD 0'1 0ATA ADJUSTED FOE CHANGES iN RESERVE RE QUIRE14ENTS.

?.? -0.5 6.0 11.4

9.2

3.3 8.2 10.9

8.4

8.2 11.5 5.9 10.8

13.3

Table 2

AWG.

10o 1979

Money and Credit Aggregate Measures Seasonally Adjusted, Billions of Dollars Bank R

1 teserves

IMUe

Stock Measures

Total

Period NTa onborrowed

Monetary ase

Loans and Invest-

-1

M-2

M-4 M--6

M-7

ments V

U ANNUALLY: 37,013 38,923 41,271

36,960

19o7-JULY AUG. SEPT.

'ICT.

1235.6 1374.3 1500.1

801.0 883.1 972.4

1298.0 1448.0 1596.7

1436.1 1601.8 1762.6

1483.8 1658.1 1848.0

845.6 856.5 86.5.

1444.5

936.6 944.1 954.1

1532.5 1545.6 1562.6

1692.6 1706.4 1726.4

1764.3 1778.5 1799.1

870.2 873.7 875.8

1484.8

1573.4 1588.6 1596.7

1736.7

1811.9

1500.1

958.8 969.1 972.4

1751.1 1762.6

1830.9 1848.0

580.1 579.6

875.0 876.7 879.5

1503.7 1509.7 1517.5

975.5 978, q78.5

1604.2 1611.8 16L6.5

1772.1 1781*1 1790.0

1861.8 1874,8 1887.6

585.1 584.0 589.9

889.8 893.8 904.4

1530.8

364.5 369.0

1537.0 1552.3

984.8 984.4 989.3

1625.9 1627.6 1637.2

1803.7 1808.7 182k.1

1905.7 1915.1 1932.3

372.1

594.8

914.0

1566.4

998.7

1651.1

1837.7

19 5.7

144.830 1451771 1459.42

368.5 368,8 368.7

589.3 589.9 589.9

902.8 904.6 905.6

987.3 989.1 990.3 994.2 998.5 998.5 998.5

788.9 875.5 9B1.5

313.8 338.7 361.2

517.2 560.6 587.2

140.6

40,403

120,517 130,640 142,381

41,099 40,928 41,223

39,782 39,780 40,163

137,699 1301290 139,841

944.6 950.6 962.7

354.4 356.7 360.7

580.1 583.6 589.5

41.399 41,274 41,271

40,122 40,570 40,403

140,777 141 450 142.381

971.0 R61.3 981.5

361.2 360.5 361.2

5B9.9 5B7.8

41,479

40,476 39,781 39,825

143,400 143.345 149,893

1002.2 1011.3 1016.2

359.7 358.6 359.0

583.4

40,754 40.815

39,730 389716 39,004

144,486 144,862 145,601

2027.9 1038.9 1052.5

364.3

JUNE

40,647 40,481 40,421

JULY P

40,821

39,650

146,924

1163.5

38,694 39,396 38,633

1976 1977 1978

30,354

800.4 875.8

MONTHLY:

NOV. DEC, 1919--JAN. FEB.

AR. APR.

MAY

587.2

1458.0 1474.1 1493.1

WEEKLY:

39,993 40,720 40,219

JULY

4 11 18 25P

41,141 39,905 41 08 L 41.056

39,464 39,044 39,899 39,764

146,877 145,736 147,071 147,347

369.8 373.4 372.4 371.1

591.6 596.0 595.2 594.0

90.,9 913.7 014.6 913.9

AUG.

LP 8P

41,006 40,780

40.160 40,016

147,717 147,478

372.3

595.1

916.5

1979-JUNE

1001.9 --

NOTES:

-- -------~---'

WEEKLY DATA ARE DAILY AVERAGES FOR STATEMENT WEEKS. MONTHLY DATA ARE DAILY AVERAGES. WEEKLY DATA ARE NOT AVA1LABLE M3, H5, M6, MT, TOTAL LOANS ANO INVESTMENTS AND THRIFT INSTITUTION DEPOSITS. I/ BASED ON DATA ADJUSTED FOR CHANGES TN RESERVE REQUIREMENTS. DATA SHOWN IN MILLIONS OF OOLLARS, P - PRELIE NARY

FOU

AUG.

Table 3

10,

1979

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

Total

Total Total

9.5 9.3 10.0

4.6 7.4 6.1

8.1 11.4 12.4

15.0 11.2 9.4

25.0 11.1 2.2

7.5 11.4 15.6

-23.3 12.8 32.8

1ST HALF 1978 2ND HALF 1978

9.3 10.2

7.6 4.5

12.2 12.0

7.6 10.7

2.9 1.5

11.7 18.4

1ST HALF 1979

8.7

0.6

4.8

6.9

-6.3

Period

Currency

1 ANNUALLY:

1976 1977 1978

Than CD's Savings Other Other Savings

CD's

Mutual Savings Bank & S&L SharesJJ

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

Credit Union Shares /

Other Private Short Term Savings U.S.Gov't Short-term Bonds/1 Securities Assets V 1 /

15.4 14.0 10.2

17.8 19.5 15.0

6.9 6.6 5.4

7.1 12.6 8.9

12.1 13.5 46.7

42.6 19.0

8.5 11.5

17.0 12.0

6.3 4.3

12.5 4.9

50.9 33.9

17.4

-7.1

8.2

4.5

0.7

40.2

65.9

2/ SEMI-ANNUALLY:

QUARTERLY: 3RD QTR. 4TH QTR.

1978 1978

11.7 9.7

8.5 -2.7

11.6 11.9

12.1 7.7

4.5 -5.3

18.5 18.1

8.3 36.6

12.1 10.7

13.5 7.7

4.6 4.0

9.3 6.2

13.7 69.3

1ST QTR. 2ND QTR.

1979 1979

7.8 8.5

-6.4 12.3

5.4 O.5

4.6 11.5

-9.5 0.2

15.6 19.4

9.9 -57.0

9.5 5.9

1.5 9.8

0.0 -0.5

35.2 45.3

58.1 55.3

2.9 0.2

17.9 18.2

12.2 25.0

10.9 11.8

13.7 10.1

4.6 4.0

2.5 7.3

21.0 44.4

QUARTERLY-AV: 3RD QTR. 4TH QTR.

1978 1978

9.6 10.6

7.3 1.7

11.3 12.3

11.0 10.2

1ST QTR. 2ND QTR.

1979 1979

9.1 8.1

-6.2 7.5

8.4 1.2

4.5 9.3

-9.6 -3.1

15.6 18.5

29.9 -41.0

9.6 6.7

0.8 8.3

1.5 0.0

28.7 48.2

67.9 54.6

9.1 9.0 16.6 7.6 10.0 11.2

5.5 7.4 12.3 -0.9 -5.9 -1.4

11.0 10.9 12.5 8.5 21.7 5.3

9.8 13.8 12.2 10.0 9.4 3.5

-3.2 6.5 10.2 -0.5 -8.5 -7.0

20.7 19.9 13.9 18.5 23.7 11.2

18.0 -5.5 12.3 1.4 92.1 15.1

11.1 11.2 13.5 12.5 9.8 9.5

11.9 11.8 16.3 9.2 4.6 9.1

6.1 3.0 4.5 4.5 3.0 4.5

-17.5 5.9 39.9 -11.4 -14.4 45.3

22.2 6.7 11.7 41.3 75.0 81.1

12.8 20.0 13.f 19.8 19.9 17.6 18 1 ERIVED

48.4 19.1 -36.4 -48.5 -55.6 -75.5 -7.8 Y AVERAGNG

MONTHLY: 1978--JULY AUG. SEPT. OCT. NOV. DEC.

1979--JAN. 8.6 -10.0 9.0 FEB. 8.6 -8.3 8.6 MAR. 6.1 -0.q -1.4 APP. 9.7 21.3 2.1 MAY 6.0 -1.4 -1.4 JUNE 9.5 16.8 0.8 JULY P 5 3 122 1/GROWTH RA ES AREBAED UN EST A PREVIOUS MONTH REPORTED DATA. 2/ RASED ON QUARTERLY AVERAGE DATA. P - PRELIMINARY.

1.6 -11.8 6.5 -12.0 5.6 -4.9 11.8 0.0 8.7 -7.2 13.6 7.8 1 146 9.4 HLY AVERAGE LEVELS

9.7 9.6 8.9 5.5 3.9 8.1

-4.5 1.5 -6.8 -1.5 16.0 0.0 6.8 0.0 4.5 0.0 17.8 -1.5 .8566t 1.5 END OF C PRENT MON H AND END OF

28.1 19.2 55.5 58.2 39.5 33.4 3

61.9 53.5 51.2 51.6 53.0 54.1

Table 4

AUG.

11,

1979

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

Period

Other CD's Than C's Other Than Total IC/ Savings Other 1 __ a _Total

Union Savins Shares Bods

Sharest

ShortTerm S. U.S. ov' Sec

Other hortterm Assets Assets

Private

Tot Total Govt Funds Demad N Deposits Dsis Non-

Dposit

456. 1

'8. 46.6

66.? 77,2 77.2

571.2

53.1

71.9 76.6 80.6

47.7

51P.9

291.

''*. 4 73.7 96,6

271.2 275.7 278.9

88.0 97.6 88.5

545,0

Rn.9

79.3

29.5

556.3

51.4 52.1

80,9 91.3 84.0

283.7 288.8 291.5

88.6 95.4 96.6

562.1 566.7

52.5

80.1

52.7

83.2

75.2

74.7

80.3

79.9

-3.5

571.2

53.1

90.6

32.2 95.3

89.,3

79.7

52.9

90.7

87.3

9.7

52.6 53.3

51.6 80.6

88.7

93.7

R1.7 84.n

92.8

97.7

86.8

14.7 19.? 9.4

589.3

53.8

100.5

101. 106.4

103.3

111.2

90.0 <!.9 93.8

13.8

106.

116. 1

95.7

16.0

* .0

9.7 15.0 16.5 17.0

0.8

233.0 250.1

489.2

426.7

202.1

224.7

544.4

21°.7

251.0

97.5

263.7

611.2

471.7 514.6

?23.0

93.2

582.1

494.1

222.9 224. i

Credit

Mutual Ban-& S&L

Savings

ANNUALLY: 1976

1977 t"78

MONTHLY: gT8---JULY AUG. SEPT. OCT. NOV. DEC.

95.2

265. 5

95.8

587.4 593.5

499.8 504.9

597.7

509.1

608.5

97.5

265.3 264.0 263.7

513.1 514.6

261. 5

615.8

98.9

259.7

620.2 619.5

96.6

1979--JAN. FEB.

MAR.

98.4

259.5

611.2

226.0

225.9 224.3 223.0

515.3 518.1 520.5

220.8 218.6 217.7

2q4.6 299.5

100.5 102.1 99.0

575.8 r80.4

302.9

525.6 52-.4

217.7

95.0 90.6 84.9

587.4 593.3

54.6

SO.6 80.6 90. 5

597.5

54.9

B0.6

100.2 100.7 10] .5

264.1 263.6 267.5

620.3

535.4

217,

307.9 313.0 317,6

102.3

269.8

626.6

541.9

219.5

322.4

84.7

6 13 20 27

101.4 101.2 101.4

269.6 267.3 267.4 266.8

532.3 618.9 620.3 621.7

534. 3 535.8

217. 217.7 218.0 219.1

315.4 316.6 317.8 319.0

85.9 84.5 94.5 84.6

4 11 18

101.9 102.0 102.3 102.6

261.9 271.3 270.2

624.4 625.1

539.2 540.4

626.1

542.2

268.6

627.3

542.7

218.7 219.5 219.6 219.7

320.5 320.9 322.6 323.0

85.2 84.7 83.9 84.6

1072.9

269.4

6 9.6

544.3

219.7

324.6

85.3

APR. MAY JUNE JULY

93.9

261.2 262.8

216.4

594.7

a"5.3

;6. 3 (5.3

51.0 62.0 79.7

71.6 72.0

67.5 69. 7

11.4 11.7

14.7

97.3

72,7

16.8 16.7 20.1 21.0 15.4

1.3

WEEKLY: 1979-JUNE

JULY

25P AUG.

1/ 21 3/

41 P -

101.8

537.1

93.4

94.. 92.7 94.3 96, 1 96.8 94, 7

FSTIMATED MONTHLY AVERAGE LEVELS DERIVED BY AVERAGING END OF CURRENT MONTH AND FND OF PREVIOUS MONTH REPORTED DATA. INCLUDES PRIIATE DOMESTI1 NONFINANCIAL INVESTORS' HDLDINGS OF COMiEPCTAL PNPER, BANKERS ACCEPTANCES, SECURITY PP*S AND MONEY MARKET MUTUAL FUND SHARES. BORROWINGS BY BANKS FROM OTHER THAN COMMERCIAL BANKS IN THE FORM OF FEDERAL FULOS PURCHLFEO, SECUATIIES SOLD UN ER AGREEMENTS TO REPURCHASE, AND OTHER LIABILITIES FOR BORROWED MONEY, PLUS GROSS LIABRLrrrEs TO OWN FOREfrG BPANCHES (EURODCLLAR BORROWINGS), LCANS SOLD TO AFFILIATES, LOAN RPS, AND OTHER MINOR ITEMS. INCLUDES TREASURY 0D5FAND DEPOSITS AT COMMERCIAL BANXS ANO FEOERAL RESERVE BANKS AND TREASURY NOTE BALANCES. PRELIMINAiR

15.4 14.3

15.3 17,7 17.6

STRICTLY CONFIDENTIAL (FR) CLASS II - FOMC AUGUST 10, 1979

TABLE 5

SELECTED INTEREST RATES (percent) Short-Term

Treasury Bills Pederal punds

(1)

TIsuelarket

New

LAuction

IYC

CO m. paper 90-119

Rate

3-mo (2)

1-yr (3)

6-mo (4)

90-da (5)

day 6

(7)

.S. Govt. Constant Maturity Yielde 7-yr 20-yr 3-yr

(8)

Long-Term MuEICorp.-Aaa cipal Utilit Recently Bond New

Pri on

(9)

(10)

Issue (11)

Offered (12)

Buyer (13)

(14)

Home Mortgages Market Seconda P. NHA GNMA

Au. (15)

Sec. (16)

L978--High Low

10.25 6.58

9.30 6.16

9.62 6.55

9.58 6.42

10.65 6.65

10.52 6.68

11.57 7.75

9.59 7.40

9.22 7.72

9.00 8.01

9.30 8.61

9.54 8.48

6.67 5.58

10.38 8.98

10.60 9.13

9.68 8.43

1979--High Low

10.75 9.93

9.69 8.85

9.68 8.64

9.63 8.87

10.46 9.46

10.57 9.66

11.75 11.50

9.60 8.78

9.34 8.74

9.30 8.79

9.87 9.42

9.94 9.40

6.58 6.08

11.13 10.38

10.88 10.42

10.05 9.51

1978--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

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 8.97 9.04

8.96 9.76 10.03

7.99 B.64 9.08

8.45 9.20 9.44

8.49 9.20 9.40

9.12 10.15 10.44

8.98 10.14 10.37

9.94 10.94 11.55

8.62 9.04 9.33

8,64 8.80 9.03

8.69 8.75 8.90

9.17 9.27 9.28

9.13 9.27 9.41

6.13 6.19 6.51

9.86 10.11 10.35

10.03

9.25

10.30 10.50

9.39 9.38

1979--Jan. Feb. Xar.

10.07 10,06 10.09

9.35 9.32 9.48

9.54 9.39 9.38

9.50 9.35 9.46

10.20 9.81 9.86

10.25 9.95 9.90

11.75 11.75 11.75

9.50 9.29 9.38

9.14 9.11 9.15

8.98 9.03 9.08

9.54 9.53 9.62

9.51 9.56 9.62

6.47 6.31 6.33

10.39 10.41 10.43

10.70 10.54 10.43

9.67 9.67 9.70

Apr. May June

10.01 10.24 10.29

9.46 9.61 9.06

9.28 9.27 8.81

9.50 9.53 9.06

9.76 9.80 9.58

9.85 9.95 9.76

11.75 11.75 11.65

9.43 9.42 8.95

9.21 9.23 8.86

9.12 9.21 8.91

9.70 9.83 9.50

9.74 9.84 9.50

6.29 6.25 6.13

10.50 10.69 11.04

10.59 10.84 10.77

9.78 9.89 9.75

July

10.47

9.24

8.87

9.19

9.70

9.87

11.54

8.94

8.92

n.a.

11.09

10.66

9.77

6.09 6.11 6.18 6.12

11.03 11.05 11.10 11.10

10.79

9.83 9.7b

Oct. Nov. Dec.

1979--June

July

Aug.

6 13 20 27

10.23 10.23 10.28 10.32

9.48 9.06 8.98 8.85

9.03 8.76 8,82 8.74

9.43 9.05 8.87 8.90

9.69 9.46 9.58 9.60.

9.92 9.86 9.67 9.68

11.75 11.75 11.68 11.50

9.06 8.90 8.99 8.81

8.94 8.82 8.87 8,78

8.98 8.89 8.93 8.82

9.57 9.51 -9.43

9,58 9.46 9.48 9.39

4 11 18 25

10.42 10.28 10.35 10.63

B.96 9.25 9.29 9.34

8.64 8.78 8.84 9.01

8.87 9,16 9.26 9.47

9.60 9.63 9.68 9.87

9.66 9.75 9.87 9.96

11.50 11.50 11.50 11.50

8.78 8.88 8.96 9.05

8.74 8.87 8.97 9.00

8.79 8.88 8.97 8.98

9.57 9.63

9.41 9.50 9.58 9.59

6.08 6.11 6.15 6.19

11.13 11.08 11.08 11.08

10.66 10.65

9.80

9.52 9 3 . 9p

9.57 9.44p

6.14 6.13

11.08

9.88

n.a.

10.64

9.82

1 8

Daily--Aug. 2 9

10.75 10.67

9.16 9.37

8.94 8.91

10.70 10.68p

9.33 9.40

8.93 8.96

9.89 9.91

9.30 9.32

9.98 10.04

11.71 11.75

9.01 8.98p

8.99 8.94p

8.96 8.92p

9.98 t.10.14

11.75 11,75

8.96 9.01p

8.92 8.99p

8.92 8.95p

9.72

9.69

9.82

10.74

9.69 -

9.78

--- NOTE: Weekly data for colums 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 6-south For columns 8 through 11, the weekly bills that will be issued on the Thursday following the end of the statement week. Data in column 5 are 1-day Wednesday quotes. Columna 12 and 13 are 1-day quotes for Friday and Thursday, repectively, following the and date is the mid-point of the calendar week over which data are averaged. meotgages with 80 percent loan-to-value ratios made Column 14 is an average of contract interest rates on commitments for conventional first of the statement week. Column 15 gives FKMA auction data for Monday preceding by a sample of insured savings and loan associations on the Friday following the end of the statement week. the end of the statement week. Column 16 is a 1-day quote for Monday preceding the end of the statement week. The FPNA auction yield is the average yield in bi-weekly auction for short-term forward commitmenta for government underwritten mortgages. GMA yields are average net yields to invetore on mortgage-backed securities for immediate delivery, assuming prepayment in 12 years on pools of 30-year FHI/VA mortgages carrying the coupon rate 50 basis points below the current UHA/VA ceiling.

1/ TABLE 6 NET CHANGES IN SYSTEM HOLDINGS OF SECURITIES (millions of dollars, not seasonally adjusted) Treasury Bills Bills Net Met1

Period Period 1972

-49D

1973 1974 1975 1976 1977

7,232 1,280 -468 863 4,361 870

Ihithn ear 1 ear 87 207 320 337 472 517 1,184

5,444

Change 2/

1978

Treasury Coupons Net Purchases - 31 1-5 O 1 - 5 5 - 10 Over 10

789

579 797 3,284

3,025 2,833

4,188

334 235 247

2,246 1,697 1,844

700

-170

682

110

700

-20

774 1,135

1979--Qtr. I Qtr. IT

-3,750 465

48 42

426 640

134

1979--Feb. Mar.

-628 1,136

426

134

Apr.

1,021 -451 -105

July

2,252

1979--June

July

6 13 20 27

-748

113 266 1,384 188

11 18 25 Aug.

1 8

LEVEL--Aug. 8 (in bilinsei 1 2f

1/ 4/ 5/ 6/ 7/ 8/ 9/

468 349 250

1,156

140 112

June

II ar 1 Year

1,747 6,202 5,187 4,660 7,962

i88

May

Totiti Toal

129 196 1,070 642 553 1,063

3,152 -5,072

,3Z582

Net Change Outright 1011 oldigs Total Torsi5/

Federal Agencies Net Purchases 4/

539 500 434 1,510 1,048 758 1,526

1978--tr. Ir Qtr. III Qtr. IV

STRICTLY CONFIDENTIAL (FR) CLASS II - FOMC AUGUST 10, 1979

1,415

120 439 191 105 -47

- 5

5 - 10

592 40a 1,665 824 469 792 45

253 244 659 460

127 -81

203 428 104

Over 10

Total

lot

1,059 864 3,082

101

318 138 114 213 24

104 -

1,631 9,273 6,303

1,613

7,267

891 1,433 127

10,035

6,227 8,724

301

7,930

-173

4,632 -

'29 258

-2

-3,283 -882 7/ -1,795

680 2,542

-20 ----

52 3,713 7/

2,135 4,290

-491 275 96

142

693

191

342 10L

288

10 218

237

211

.. ..

16.1

28.4

142

12.3

258

482

371

693

........

11.9

3,427

-748 -33 755 101 806 266 1,384 188

191

288

482

693

....

68.8

1.6

4.3

1.5

1,224 266 -2,130

-399 371

-1,579 7/8/

237

6/ -1,358 -46 -154 1,272 3,607 -2,892 -1,774

--- 218

RPs

-944 -2,353 5,840 -1,665 -5,513 1,230 1,830 5,723 9/ -4.853 -3.554 8,063 -3,828 1,184 -5,466

8.2

119.7

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 matuL ng 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 SyeCem,and redemptions (-) of Agency and Treasury coupon issues. Includes changes in both RPa (+) and matched sale-purchase transactions (-). The Treasury sold $2,600 million of special certificates to the Federal Reserve on March 31 and redeemed the last of them on April 4. 640 million of 2-year notes were exchanged for a ike amount of cash management bills on April 3. On April 9 the bills were exchanged for new 2-year notes. This includes $75 million of matched purchase-eale agreementa,

Cite this document

APA

Federal Reserve (1979, August 13). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19790814

BibTeX

@misc{wtfs_bluebook_19790814,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1979},
  month = {Aug},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19790814},
  note = {Retrieved via When the Fed Speaks corpus}
}