bluebooks · May 20, 1985

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.

May 17,

Strictly Confidential (FR)

1985

Class I FOMC

MONETARY POLICY ALTERNATIVES

Prepared for the Federal Open Market Committee By the staff

Board of Governors of the Federal Reserve System

STRICTLY CONFIDENTIAL (FR)

May 17, 1985

CLASS I - FOMC

MONETARY POLICY ALTERNATIVES Recent Developments (1)

Growth of M1 in April was around 6 percent, but data for

early May suggest somewhat stronger growth this month, bringing M1 a little above the 6 percent annual rate path adopted by the Committee at its last meeting.

Flows associated with refunds and final payments around

the April tax date appear to have had little net impact on recent M1 growth.

Refunds probably added to growth in April and perhaps in early

May, as the Treasury greatly accelerated processing, but larger-thanexpected tax payments reflected in a corresponding rise in the Treasury's cash balance may have had an offsetting effect. (2)

In contrast to M1, growth in the broad aggregates has been

running well below the FOMC's March-to-June paths of 7 and 8 percent for M2 and M3.

In April, these aggregates showed little net change, and data

for early May suggest only a modest rebound.

Weakness in the broad

aggregates stemmed in large part from managed liabilities.

The substantial

rise in the Treasury's balances at banks along with a sizable liquidation of inventories of Treasury securities at large banks in April reduced the need to raise funds in the market.

In addition, it

is possible that

larger-than-usual nonwithheld tax payments out of MMDAs and MMMFs may have held down growth in the broad aggregates to a degree.

Finally, strong

inflows to IRA and Keogh accounts--excluded from monetary measures--may also have retarded growth of M2 and M3 in April by a small amount. (3)

Domestic nonfinancial debt is estimated to have increased

at an 11-3/4 percent annual rate in April, the same as its March pace,

-2-

KEY MONETARY AGGREGATES (Seasonally adjusted annual rates of growth) QIV to QI

QIV to Apr.

6.1

10.6

9.3

3.8

-0.8

12.0

8.3

5.6

0.7

10.7

7.9

Domestic nonfinancial debt

11.8

13.3

12.9

Bank credit

11.4

4.4

9.9

9.3

Nonborrowed reserves 2

4.5

13.2

25.0

19.6

Total reserves

5.9

10.6

21.2

17.2

Monetary base

5.4

4.9

8.7

534

455

766

746

Mar.

Apr.

5.7

Money and Credit Aggregates

Reserve Measures1

Memo:

7.8

(Millions of dollars)

Adjustment and seasonal borrowing

Excess reserves

NOTE: Monthly reserve measures, including excess reserves and borrowing, are calculated by prorating averages for two-week reserve maintenance periods that overlap months.

1. Growth rates of reserve measures are adjusted to remove the effects of discontinuities resulting from phased changes in reserve ratios under the Monetary Control Act. 2. Includes "other extended credit" from the Federal Reserve.

as lower nonfederal borrowing offset a pick-up in expansion.

Still,

growth in

federal government debt

this aggregate from the fourth quarter of

1984 remains somewhat above the 12 percent upper limit of its range.

Business borrowing has moderated a little

monitoring

so far this year,

but

with merger-related debt issuance running close to the average pace of 1984,

remains sizable.

Household demands for funds, especially for

consumer installment credit, also have remained quite strong. (4) The nonborrowed reserve path for the intermeeting period initially was constructed assuming $400 million of adjustment plus seasonal borrowing at the discount window.

In late April, however, the borrowing

assumption was raised to $450 million as special situation borrowing by a number of thrift

institutions increased.

maintenance periods (ending May 8)

Over the three complete reserve

following the last Committee meeting,

adjustment plus seasonal borrowing averaged about $475 million, with excess reserves averaging somewhat higher than expected. tion borrowing by thrifts,

Excluding special situa-

the borrowing average was around $380 million.

Seasonal borrowing has also been somewhat stronger than might have been expected,

given the prevailing configuration of the discount and money

market rates, perhaps reflecting the liberalized provisions of the regular seasonal program as well as liquidity pressures at small banks. in

Thus far

the current maintenance period adjustment plus seasonal borrowing has

averaged $830 million, boosted by a substantial further increase in special situation borrowing by thrifts

as well as borrowing by large banks faced

with unexpected funds needs late in the day.

On May 16,

special thrift

borrowing totaled $496 million (of which $22 million are now being reported as extended credit).

-4(5)

The federal funds rate has declined about 1/4 percentage

point since the previous FOMC meeting,

with the rate averaging a shade

over 8-1/8 percent during the past two weeks.

Other market interest rates

declined by about 3/4 to 1-1/4 percentage points, prior to announcement of the reduction in the discount rate from 8 to 7-1/2 percent late Friday.1/ The sizable drop in market rates reflected in

part abatement of previously

held expectations that Federal Reserve policy might take a firmer turn and, as the intermeeting period progressed,

a perception that some slight easing

might be under way or at least in prospect as the federal funds rate declined somewhat.

Markets were also affected by incoming evidence

indicating that the economy was not strengthening significantly from the weak first

quarter, by slowing in

growth of the monetary aggregates,

the agreement in the Senate on reducing federal budget deficits. exchange value of the dollar depreciated, the last FOMC meeting in

on balance,

and by

The

by 5 percent since

volatile markets;

The failures of two small government securities dealers and the problems of privately-insured Maryland thrifts have had little

during the intermeeting period appear to

systemic impact on domestic credit or foreign exchange markets;

although no general "flight to quality" appears to have emerged, to be some added caution in

there seems

attitudes toward RPs of smaller dealers.

Following the announcement and on thin, late hour trading, Treasury rates note and bond prices rose by about 3/4 to a full point and bill dropped around 5 to 10 basis points.

Prospective developments (6) The table below gives three alternative specifications for growth in the monetary aggregates over the March-to-June period, along with the growth rates for this period chosen by the Committee at its March meeting and the growth implied by each alternative for the two-month Aprilto-June period.

It also shows ranges for the federal funds rate associated

with each alternative.

(More detailed data can be found on the charts

and table on the following pages). March Alt. A

Alt. B

Alt. C

FOMC Paths

Growth from March to June

6-1/2

4-1/2

3-1/2

5-1/2

5-1/4

7-1/2

6-3/4

6-1/2

5-3/4

11 1/

7-1/2

11-1/2 1

Implied growth from April to June /

Associated federal funds rate range

(7)

5 to 9

5-1/2 to 9-1/2

6 to 10

The specifications of alternative B involve slightly

faster M1 growth over the three-month March-to-June period than adopted at the last Cmmittee meeting, but much slower growth in the broader 1/

Average growth in May and June, given actual growth in April, needed to hit March FOMC paths.

Alternative Levels and Growth Rates for Key Monetary Aggregates M1

Alt. A --

Alt. B --

Alt. C --- Alt. A -

Alt. B -

Alt. C --- Alt. A ----

Alt. B -

Alt. C

Monthly Levels 1985--January February March

562.7 569.4 572.1

2398.9 2420.9 2428.6

3020.6 3041.6 3055.7

575.0 578.6 582.1

575.0 578.5 581.4

575.0 578.4 580.7

2427.0 2437.2 2455.9

2427.0 2437.0 2452.9

2427.0 2436.8 2449.9

3057.5 3071.5 3097.7

3057.5 3071.5 3095.4

3057.5 3071.5 3093.1

9.0 14.3 5.7

13.7 11.0 3.8

10.2 8.3 5.6

6.1 7.5 7.3

6.1 7.3 6.0

6.1 7.1 4.8

-0.8 5.0 9.2

-0.8 4.9 7.8

-0.8 4.8 6.5

0.7 5.5 10.2

0.7 5.5 9.3

0.7 5.5 8.4

10.6 7.4

10.6 7.2

10.6 7.0

12.0 4.0

12.0 3.8

12.0 3.6

10.7 4.8

10.7 4.7

10.7 4.6

1985 March to June 1985 April to June

7.0 7.4

6.5 6.7

6.0 5.9

4.5 7.1

4.0 6.4

3.5 5.7

5.5 7.9

5.2 7.4

4.9 7.0

04 84 to Apr. 85 Q4 84 to June 85

9.3 8.9

9.3 8.6

9.3 8.4

8.3 8.0

8.3 7.8

8.3 7.6

7.9 8.0

7.9 7.8

7.9 7.7

April May June Growth Rates Monthly 1985--January February March April May June Growth Rates 1985--QI Q2

Chart 1

ACTUAL AND TARGETED M1 Bi I ions of do l ars

I 600

ACTUAL LEVEL SSHORT RUN ALTERNATIVES

590

A* c

: *

-1 580

570

-- 560

-- 550

N 1984

J 1985

540

Chart 2

ACTUAL AND TARGETED M2 Bi

lions of do Illara

1 2600

H 2550

ACTUAL LEVEL SSHORT RUN ALTERNATIVES

H 2500

2450

H 2400

-1 2350

H 2300

N 1984

I SI

J J 1985

2250

Chart 3

ACTUAL AND TARGETED M3 Bil

ions of do I lars

1 3300

ACTUAL LEVEL SSHORT RUN ALTERNATIVES -- 3200

-- 3100

3000

-- 2900

N 1984

J J 1985

2800

-7aggregates, given their weak performance in April.

This behavior of the

aggregates is expected to be consistent with seasonal plus adjustment borrowing at the discount window of $300 to $350 million, assuming that borrowing by privately-insured thrift institutions experiencing persistent liquidity difficulties is in effect extended credit.

Total reserves

might increase at a 6 percent annual rate over May and June under alternative B, with nonborrowed reserves (including extended credit) increasing at 8 percent rate. (8)

The federal funds rate will probably trade around 7-3/4

percent, given the current 7-1/2 percent discount rate.

Although the

discount rate cut was partly anticipated, market interest rates generally are likely to settle somewhat below recent levels, with the 3-month Treasury bill probably trading mostly around 7-1/4 percent.

The exchange rate

may also decline somewhat, although some foreign authorities might take advantage of the opportunity to allow their domestic interest rates to decrease further. (9)

The decline in interest rates over the past several weeks

will be tending to boost money demand in May and June, and M1 under this alternative is expected to increase at a 6-1/2 percent rate over the March-to-June period, despite some weakening in projected nominal GNP growth for the second quarter.

On a quarterly-average basis, M1 would

increase at a 7-1/4 percent rate in the second quarter, which implies a second consecutive quarterly decline in velocity, although at a somewhat slower rate than in the first quarter; such a decline is roughly consistent with model results.

By June, M1 under alternative B would be about

$1-3/4 billion (or 0.3 percent) above the upper parallel line of the band drawn from the fourth quarter end points of the 4 to 7 percent range

-8for 1985, with growth from QIV '84 to June at around an 8-1/2 percent annual rate. (10)

Growth of M2 and M3 under alternative B would be expected

to pick up in May and June to a 6-1/2 to 7-1/2 percent annual rate on average.

Much of the pick-up would be expected in RPs and the other

managed liability components of the broader aggregates, partly as Treasury deposits at banks drop after late May.

Core deposits in the nontransactions

M2 are likely to expand more rapidly than the 6 percent pace of April, and net inflows to MMMFs are likely to pick up, given the usual lagged adjustments in changes in returns on these instruments relative to declines in market rates. (11)

The debt of nonfinancial sectors is expected to increase

in the second quarter at a little under its pace of the first quarter, and for the first half of 1985 would be right around the 12 percent upper limit of the FOMC's monitoring range.

Growth in U.S. government debt, seasonally

adjusted, will be a little larger in the second quarter than in the first, although most of the Treasury's cash requirements for the current quarter have already been met following the mid-quarter refunding.

Credit raised

by businesses is projected to increase slightly in the second quarter. Underlying needs for funds are being held down by relatively restrained inventory accumulation, but borrowing totals continue to be swelled by financing for mergers and stock repurchases; over the first half of the year unusual issuance of debt for such purposes is estimated to account for around 1-1/4 percentage points of total debt expansion of domestic nonfinancial sectors.

Mortgage borrowing is expected to continue at about

the first-quarter pace, but consumer credit growth likely will moderate somewhat as spending on consumer durables increases more slowly.

-9(12)

As compared with alternative B, alternative C involves

tighter reserve conditions thought more likely to be consistent with constraining M1 growth to the 6 percent path for March to June chosen by the Comittee at its last meeting.

Expansion at this rate would leave

M1 quite close to, though still a bit above, the upper limit of its band. This alternative, which contemplates M1 growth of a little under 5 percent in June, would be expected to entail adjustment plus seasonal borrowing, excluding that by thrifts in special situations, of around $450-$500 million.

The pick-up in growth of the broader aggregates would be somewhat

less rapid under this alternative, with M2 and M3 expanding in a 5-3/4 to 7 percent range over May and June. (13)

The federal funds rate would probably remain around

8 to 8-1/4 percent under this alternative.

As such a rate persisted,

counter to market expectations given the cut in the discount rate, other interest rates would rise appreciably from recent levels, retracing a good part of the decreases since the last FOMC meeting.

The dollar would

probably rise on foreign exchange markets. (14)

Alternative A contemplates lesser restraint on reserve

conditions than B.

Borrowing would be expected to drop to around minimum

levels--perhaps around $200 to $250 million--and the federal funds rate to fall to somewhat under the current 7-1/2 percent discount rate.

Growth

of M1 from March to June would be expected to be around 7 percent, bringing this aggregate to a level about 1/2 percent above the upper parallel band. The further drop of interest rates expected under this alternative could lead to substantial inflows into deposits and money funds, and growth in M2 and M3 over May and June would probably pick up into a 7 to 8 percent range.

Interest rates and exchange rates would decline further, with the

three-month bill rate probably falling to near 7 percent.

-10-

Directive language (15) alternatives,

Draft language for the operational paragraph, with is shown below with suggested deletions from the current

directive indicated in strike-through form and proposed additions in caps.

As in the past, it is assumed that the "degree of pressure

on reserve positions" is indexed primarily by the level of borrowing at the discount window, excluding borrowing classified as extended credit. In the proposed directive it is also assumed that the "degree of pressure on reserve positions" excludes any special situation borrowing at thrifts that has not yet been classified as extended credit.

On that basis,

alternative B is suggested as consistent with maintaining the existing degree of pressure on reserve positions, although the associated funds rate is likely to be lower than during the past several weeks owing to the cut in the discount rate. Bracketed alternative language with respect to the aggregates is suggested for consideration in view of the substantial shortfall in growth of the broader aggregates from expectations at the time of the March meeting. OPERATIONAL PARAGRAPH In the implementation of policy for the immediate future, taking account of the progress against inflation, uncertainties in the business outlook, and the exchange value of the dollar, the Committee seeks to REDUCE SOMEWHAT (Alt. A)/maintain (Alt. B)/INCREASE SOMEWHAT (Alt. C)/the existing degree of pressure on reserve positions.

This

action is expected to be consistent with growth in M1, M2, and M3 at ____,____, AND ____ percent, 6, 7,and 8] annual rates of around [DEL:

-11respectively, during the period from March to June.

[Alternative:

This action is expected to be consistent with growth in M1, [DEL: M2 and M3] at AN annual [rates] RATE of around [DEL: 6, 7, and 8]

____percent,

[DEL: respectively,] during the period from March to June.

M2 AND M3,

AFTER SHOWING LITTLE CHANGE IN APRIL, ARE EXPECTED TO GROW AT ANNUAL RATES OF ____ AND ____ PERCENT, RESPECTIVELY, OVER MAY AND

JUNE ON AVERAGE.] Somewhat lesser reserve restraint might (WOULD) be acceptable in the event of substantially slower growth of the monetary aggregates while somewhat greater restraint might (WOULD) be acceptable in the event of substantially higher growth.

either case such a change would be considered in the context of appraisals of the strength of the business expansion, progress against inflation, and conditions in domestic credit and foreign exchange markets.

The Chairman may call for Committee consulta-

tion if it appears to the Manager for Domestic Operations that pursuit of the monetary objectives and related reserve paths during the period before the next meeting is likely to be associated with a federal funds rate persistently outside a range of [DEL: 6-to-10] ____TO ____ percent.

Selected Interest Rates Percent

May I

20,

1985

aLono- erm

1984--HLgh Low

11.77 7.95

10.65 7.71

10.76 8.01

11.09 6.39

11.71 8.24

11.35 8.04

10.72 8.38

13.00 11.00

13.44 10.39

13.84 11.30

13.81 11.36

15.30 12.70

11.44 9.86

14.68 13.14

14.00 12.50

12.31 10.81

1985--High Low

8.75 7.69

8.65 7.64

9.03 7.81

9.21 8.00

9.11 8.08

8.83 7.89

8.31 7.77

10.75 10.50

11.19 9.89

11.95 11.01

11.89 11.18

13.23 12.24

10.31 9.34

13.29 12.90

13.00 12.50

11.14 10.59

1984--Apr. May Juine

10.29 10.32 11.06

9.69 9.83 9.87

9.84 10.31 10.51

9.95 10.57 10.93

10.41 11.11 11.34

10.17 10.38 10.82

9.29 9.52 9.92

11.93 12.39 12.60

11.98 12.75 13.18

12.63 13.41 13.56

12.65 13.43 13.44

13.96 14.79 15.00

10.26 10.88 11.07

13.65 13.94 14.42

13.00 13.94 14.00

11.16 11.35 11.67

July Aug. Sept.

11.23 11.64 11.30

10.12 10.47 10.37

10.52 10.61

11.56

10.47

10.89 10.71 10.51

11.06 11.19 11.11

10.30 10.58 10.62

13.00 13.00 12.97

13.08 12.50 12.34

13.36 12.72 12.52

13.21 12.54 12.29

14.93 14.12 13.86

10.84 10.40 10.54

14.67 14.47 14.35

14.00 13.70 13.50

12.20 12.14 12.00

Oct.

9.99 9.43 8.38

9.74 8.61 8.06

9.87 8.81 8.28

9.93 9.01 8.60

10.38 9.18 8.60

10.05 8.39

10.16 9.34 8.55

12.58 11.77 11.06

11.85 10.90 10.56

12.16 11.57 11.50

11.98 11.56 11.52

13.52 12.98 12.88

10.77 10.69 10.40

14.13 13.64 13.18

13.38 12.75 12.50

11.96 11.54 11.01

1985--Jan. Feb. Nar.

8.35 8.50 8.58

7.76 8.27 8.52

8.00 8.39 8.90

8.33 8.56 9.06

8.14 8.69 9.02

7.99 8.46 8.74

8.00 7.80 7.97

10.61 10.50 10.50

10.43 10.55 11.05

11.38 11.51 11.86

11.45 11.47 11.81

12.78 12.76 13.17

9.96 10.07 10.23

13.08 12.92 13.17

12.50 12.50 12.63

10.84 10.63 10.92

Apr.

8.27

7.95

8.23

1.44

9.02

8.31

7.98p

10.50

10.49

11.43

11.47

12.75

9.85

13.20

12.75

10.83

8.44 8.64 8.65 8.86

8.34 8.42 8.48 8.49

7.79 7.78 7.83 7.81

10.50 10.50 10.50 10.50

10.42 10.43 10.39 10.76

11.30 11.40 11.39 11.75

11.31 11.31 11.37 11.71

12.68 12.60 12.95 13.18

9.96 9.98 10.)09 10.24

12.91 12.90 12.94 13.02

12.50 12.50 12.50 12.50

10.64 10.59 10.69 10.83

Nov. Dec.

11.47 11.29

9.01

1985--Feb.

6 13 20 27

8.59 8.44 8.57 8.40

8.14 8.21 8.20 8.40

8.25 8.30 8.29 8.57

8.46 8.49 8.46 8.71

Mar.

6 13 20 27

8.63 8.52 8.75 8.38

8.65 8.60 8.54 8.41

8.92 8.92 9.03 8.83

9.04 9.05 9.21 9.01

9.12 9.06 9.13 8.86

8.74 8.73 8.83 8.64

7.82 7.91 7.99 8.03

10.50 10.50 10.50 10.50

11.08 11.03 11.19 11.02

11.9) 11.81 11.95 11.83

11.87 11.78 11.89 11.78

11.14 13.23 11.22 13.06

10.25 10.25 10.24 10.19

13.10 13.20 13.24 13.29

12.50 12.50 12.50 13.00

10.68 10.87 10.97 11.14

Apr.

3 10 17 24

8.68 8.45 8.46 7.69

8.18 8.11 7.98 7.74

8.57 8.53 8.20 7.95

8.79 8.73

8.80 8.55

8.17

8.20

8.06 8.03 8.08 7.92

10.50 10.50 10.50 10.50

10.82 10.79 10.42 10.21

11.70 11.69 11.15 11.18

11.68 11.67 11.36 11.28

12.98 12.71 12.53 12.65

10.09 9.83

8.39

8.68 8.57 8.40 7.99

9.82

13.27 13.23 13. 16 13.12

13.00 13.00 12.50 12.50

10.97 10.83 10.80 10.72

8.35 8.19 8.14

7.82 7.76 7.64

8.07 7.94 7.81

8.29 8.13 8.00

8.21 8.19 8.11

8.11 8.06 7.98

7.83

10.50 10.50 1(.50

10.37 10.16 9.89

11.17 11.22 11.01

11.45 11.33 11.18

12.56 12.49 12.24

9.73 9.56 9.34

13.07 13.012 12.94

12.50 12.50 12.50

10.66 10.61 10.59

8.18 8.24 8.OIp

7.73 7.37 7.40

7.88 7.56 7.59

8.05 7.78 7.84

8.12 8.00 7.95

8.01 7.90 7.87

I1 .014

1 1.24) 1 1.02 I .isp

May

8 15

Daily--May

10 16 17

8.75

7.8.2 7.77

NOTE. Weekly dat forcolumns 1 through I are stateme week averages Data In column 7 are taken from Doroghue' Mony Fund Report Columns 12 and 13 are 1day uote forFriday and Thursday. respeclvely. following the d o the statement week. Column 13 Is the ond Buy revenue Index. Column 14 is an average of contract Intet rateson new commltmnt for conventlonal flrst mortgages wih 80 percent loan-to-value

10.50 10.50 10.50

9.95 9.62 9 .64p

10.81 84 10. p

4.64

ratios at a sample of savings and loan associations on the Friday following the end of the statemnt week. After November 30. 1963, column 15 relets only to VA guaranteed loans Column 16 is the average iniial contract rate on new commitments or one year ARM s at those institutions offering both fixed- and adjustablerate mortgages with thesame number of discount points FR 1367 (446)

Security Dealer Positions nay 20. 1985

Millions of dollars i

.;asn rosiulons

Period

Netl Total Tota

Treasury bills

Treasury coupo over under 1 year 1 year

federal agency

private short-term

Treasury bills

Forward and Futures Positions Treasury cupons under over federal aoency 1 year I year ao enc .

III

1984--Hlgh Low

3?.155 i. 107

15,653 -8.251

1,296 -1,038

6,854 -5.664

19,525 11,086

21,046 11.263

8.272 -14,456

-327

1985-High Low

51.514 19,336

14,672 9,601

2,068 -390

6.479 -6,653

21,007 16,693

21,623 14,603

3,823 -14,946

1984--Apr. Nay June

14,408 14.163 16,483

2,929 -7,105 -2,631

-32 -291 -596

-1,643 -1,754 -3.248

16,649 16,849 15,999

13,065 12,525 14,457

-2,140 5,511 2,207

July

12,355 11,499 17,976

-2,382 4,542 10,316

-604 -89 310

-3,391 -1,184 623

16,040 16,098 14,063

14,751 15,556 17,695

-2,528 -7,312 -9,771

21.955 19,094 26.220

11,649 9,748 13,841

116 -487 -416

2,649 5,087 4,762

13,168 16.106 18,470

16,285 17,950 19,180

-9,867 -8,549 -11,718

11,634 12,456 13,979

-110

Har.

24.042 32,974 48.422

851 1,316

2,467 227 -4,338

19,417 19,612 19,337

19.977 19,445 16.214

-13,318 -3,648 841

Apr.

36,702*

11,5590

1,203*

-4,534* 32 202 1,114

Aug. Sept.

Oct. Nov.

Dec. 1985--Jan.

Feb.

18,048*

17,566*

20,007 18,846 18,813

19.633 19,533 18,439

-2.950*

private

shrS.rm .....

shnri.i.n,,

3.381 -986

-7.223 -111,679

19 -128

6,177

-171 -373

-6,190 -8,817

6.988 -14.566

-13 -10 -21

476 347 1,448

-9,422 -9,676 -9,937

-5,462 -2,233 -1,195

2,800 2,504 2,156

-9,650 -9,073 -8,334

-2,592 -9,304 -8,960

-72 -76 59

2,154 533 -389

-8,81 5 -9,229 -8,311

-5,312 -11.991 -9.256

-31 -12 -52

702 2,494 4.677

-7,033 -8,164 -8.351

-9,662 -10,287 4.799

-89 -240 -122

10*

5,583*

-7,843*

-6,835 -3,082 1,557

-27 -11 -7

2,938 2.225 2,649

-8,164 -8,243 -8,255

-4 -13,053

* 1,939

1985--Feb.

13 20 27

24.458 31.030 45,148

10,534 12.792 13,495

713 851 1,132

Har.

6 13 20 27

53,514 51,956 44,690 46,433

14,198 14,672 13,809 14,342

2.068 1,749 1,157 625

-4.972 -6.653 -4,467

20.223 20,412 19.390 18,456

18,532 16.182 14.603 15,718

3.823 2,773 2,046 -3,026

19 -6 -25 -1Z28

3.632 4,97 4.401 5,779

-8,817 -8,750 -8.285 -7,853

1,638 5,498 4,246 6,998

11,723 10,255 13.109 12,198*

858 705 1,019 1,648*

-1,988 -4,252 -4,602 -5,840*

16,693 17,372 18,862 18,671*

16.817 16,350 16,536 18.679*

-4,819 -3,772 -2,927 -2,993*

-75 -14

5,200 5,512

17 24

39,084 34,889 37,605 35.876*

5,678*

-8,005 -8,539 -7,910 -7.411*

2,680 1 ,251 -2.663 -4,765*

I 8 15

38,156* 37,971* 26.842*

9,513* 11,392* 9.973*

1,545* 1,266* 1,195*

-4.626* -4,671* -946*

18,028* 19,243* 19,514*

19,493* 19,984* 18,306*

115* -2,752* -7,404*

67* 1(14* 1(18*

5,380* 6,690* 6,943*

-7,341* -7,394* -7,903*

-4,012* -5.891* -12,944*

Apr.

Hay

-1,803

NOTE: Government securities dealer cash positions consist of securities already delivered, commllments to buy (sell) scurities on an outright basis for immediate delivery (5 business days or less), and certain "when-issued" securities for delayed delivery (more than 5 business days) Futures and forward positions include all other commllments involving delayed delivery; utures contracts are rranged on organized exchanges. 1. Cash plus forward plus fulures positions in Treasury, federal agency, and private shortterm securities * Strictly conlidentlal

3 10*

6.177

-14.372 -12.084 -3,790

Net Changes In System Holdings of Securities1 Millions of dollars, not seasonally adjusted

STRICTLY CONFIDENTIAL (FR) CLASS II-FOMC May 20, 1985

1 Change from end of period to end of period. 5 In addition to the net purchases of securities, also reflects changes in System holdings of bankers' 2 Outright transactions in market and with foreign accounts, and redemptions (-) in bill auctions acceptances, direct Treasury borrowing from the System and redemptions (-) of agency and Trea sury coupon issues. 3 Outright transactions in market and with foreign accounts, and short term notes acquired in ex change for maturing bills. Excludes redemptions, maturity shifts, rollovers of maturing coupon 6 Includes changes in RPs (+), matched sale purchase transactions (-), and matched purchase sale issues, and direct Treasury borrowing from the System transactions (+). 4 Outright transactions in market and with foreign accounts only. Excludes redemptions and maturity shifts.

Cite this document

APA

Federal Reserve (1985, May 20). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19850521

BibTeX

@misc{wtfs_bluebook_19850521,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1985},
  month = {May},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19850521},
  note = {Retrieved via When the Fed Speaks corpus}
}