FOMC Minutes
Meeting of Federal Open Market Committee
June 20, 1967
MINUTES OF ACTIONS
A meeting of the Federal Open Market Committee was held in
the offices of the Board of Governors of the Federal Reserve System
in Washington, D. C., on Tuesday, June 20, 1967, at 9:30 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Hayes, Vice Chairman
Brimmer
Maisel
Mitchell
Robertson
Scanlon
Sherrill
Swan
Wayne
Patterson, Alternate for Mr. Francis
Messrs. Ellis, Hickman, and Galusha, Alternate
Members of the Federal Open Market Committee
Messrs. Bopp, Clay, and Irons, Presidents of
the Federal Reserve Banks of Philadelphia,
Kansas City, and Dallas, respectively
Mr. Holland, Secretary
Mr. Sherman, Assistant Secretary
Mr. Kenyon, Assistant Secretary
Mr. Broida, Assistant Secretary
Mr. Molony, Assistant Secretary
Mr. Hackley, General Counsel
Mr. Brill, Economist
Messrs. Craven, Hersey, Jones, Koch, and
Partee, Associate Economists
Mr. Holmes, Manager, System Open Market
Account
Mr. Coombs, Special Manager, System Open
Market Account
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Mr. Cardon, Legislative Counsel, Board of
Governors
Mr. Fauver, Assistant to the Board of
Governors
Mr. O'Connell, Assistant General Counsel,
Legal Division, Board of Governors
Mr. Williams, Adviser, Division of Research
and Statistics, Board of Governors
Mr. Axilrod, Associate Adviser, Division
of Research and Statistics, Board of
Governors
Miss Eaton, General Assistant, Office of
the Secretary, Board of Governors
Miss McWhirter, Analyst, Office of the
Secretary, Board of Governors
Mr. Lewis, First Vice President, Federal
Reserve Bank of St. Louis
Messrs. Eisenmenger, Link, Eastburn, Mann,
Parthemos, Taylor, Tow, and Green, Vice
Presidents of the Federal Reserve Banks
of Boston, New York, Philadelphia,
Cleveland, Richmond, Atlanta, Kansas
City, and Dallas, respectively
Mr. Nelson, Director of Research, Federal
Reserve Bank of Minneapolis
Mr. Deming, Manager, Securities Department,
Federal Reserve Bank of New York
Mr. Stiles, Senior Economist, Federal Reserve
Bank of Chicago
By unanimous vote, the minutes of the meeting of the Federal
Open Market Committee held on May 23, 1967, were approved.
By unanimous vote, the System open market transactions in
foreign currencies during the period May 23 through June 19, 1967,
were approved, ratified, and confirmed.
By unanimous vote, renewal until December 22, 1967 of the
$50 million supplementary swap arrangement with the National Bank of
Belgium, scheduled to mature on June 30, 1967, and its consolidation
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with the basic $100 million arrangement maturing on December 22,
1967, was approved, on the understanding that the combined
arrangement would have a twelve-month term after December 22, 1967.
By unanimous vote, renewal for a further period of six
months of the $150 million standby swap arrangement with the
Netherlands Bank, scheduled to mature on June 30, 1967, was approved.
By unanimous vote, the open market transactions in Government
securities, agency obligations, and bankers' acceptances during the
period May 23 through June 19, 1967, were approved, ratified, and
confirmed.
By unanimous vote, the Federal Reserve Bank of New York was
authorized and directed, until otherwise directed by the Committee,
to execute transactions in the System Account in accordance with the
following current economic policy directive:
The economic and financial developments reviewed at
this meeting suggest that economic activity is rising
modestly, and that prospects for economic expansion later
in the year have strengthened. Output is still being
retarded by adjustments of excessive inventories, but
growth in final demands continues strong, reflecting
substantial further increases in Government expenditures
and also some strengthening of consumer buying. Prices
of farm products have turned up recently, but average
prices of industrial commodities have remained stable.
The pace of bank credit expansion has increased in recent
weeks, but is still well below the rapid rate of earlier
in the year. Most long-term interest rates have tended
to rise further under the influence of heavy securities
market financing, and most short-term yields have also
increased. The balance of payments deficit has remained
substantial despite some improvement in the foreign trade
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surplus. In this situation, it is the Federal Open
Market Committee's policy to foster money and credit
conditions, including bank credit growth, conducive to
renewed economic expansion, while recognizing the need
for progress toward reasonable equilibrium in the
country's balance of payments.
To implement this policy, while taking account of
expected Treasury financing activity, the timing and
quantity of which are still uncertain, System open
market operations until the next meeting of the Committee
shall be conducted with a view to maintaining about the
same conditions in the money market as have prevailed
since the preceding meeting of the Committee, while
continuing to utilize operations in coupon issues in
supplying part of reserve needs.
By unanimous vote, the Federal Open Market Committee's rules
regarding the availability of information were revised effective
July 4, 1967, to read as follows:
RULES REGARDING AVAILABILITY OF INFORMATION
SECTION 271.1--BASIS AND SCOPE
This Part is issued by the Federal Open Market
Committee (the "Committee") pursuant to the require
ment of section 552 of Title 5 of the United States
Code that every agency shall publish in the Federal
Register for the guidance of the public descriptions
of the established places at which, the officers from
whom, and the methods whereby, the public may obtain
information, make submittals or requests or obtain
decisions.
SECTION 271.2--DEFINITIONS
(a) "Information of the Committee". - For purposes
of this Part, the term "information of the Committee"
means all information coming into the possession of
the Committee or of any member thereof or of any officer,
employee, or agent of the Committee, the Board of Governors
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of the Federal Reserve System, or any Federal Reserve
Bank, in the performance of duties for, or pursuant to
the direction of, the Committee,
(b) "Records of the Committee". - For purposes of
this Part, the term "records of the Committee" means
rules, statements, opinions, orders, memoranda, letters,
reports, accounts, and other papers containing informa
tion of the Committee that constitute a part of the
Committee's official files.
SECTION 271.3--PUBLISHED INFORMATION
(a) Federal Register. - To the extent required by
sections 552 and 553 of the U.S. Code, and subject to
the provisions of sections 271.5 and 271.6 of this
Part, the Committee publishes in the Federal Register,
in addition to this Part,
(1)
a description of its organization;
(2)
statements of the general course and
method by which its functions are
channeled and determined;
(3)
rules of procedure;
(4)
substantive rules of general applicability,
and statements of general policy and inter
pretations of general applicability formu
lated and adopted by the Committee;
(5)
every amendment, revision, or repeal of the
foregoing; and
(6)
general notices of proposed rule making.
(b) Policy record. - In accordance with section 10
of the Federal Reserve Act (12 U.S.C. 247a), each annual
report made to Congress by the Board of Governors of the
Federal Reserve System includes a complete record of the
actions taken by the Committee during the preceding year
upon all matters of policy relating to open market opera
tions, showing the votes taken and the reasons underlying
such actions.
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(c) Other published information. - From time to time,
other information relating to open market operations of
the Federal Reserve Banks is published in the Federal
Reserve Bulletin, issued monthly by the Board of Governors
of the Federal Reserve System, in such Board's annual
report to Congress, and in announcements and statements
released to the press. Copies of issues of the Bulletin
and of annual reports of the Board may be obtained upon
request.
SECTION 271.4--RECORDS AVAILABLE TO THE PUBLIC
ON REQUEST
(a) Records available. - Records of the Committee
are made available to any person, upon request, for
inspection or copying in accordance with the provisions
of this section and subject to the limitations stated
in sections 271.5 and 271.6 of this Part. Records
falling within the exemptions from disclosure set forth
in section 552(b) of Title 5 of the United States Code
and in section 271.6 of this Part may nevertheless be
made available in accordance with this section to the
fullest extent consistent, in the Committee's judgment,
with the effective performance of the Committee's
statutory responsibilities and with the avoidance of
injury to a public or private interest intended to be
protected by such exemptions.
(b) Place and time. - In general, the records of
the Committee are held in the custody of the Board of
Governors of the Federal Reserve System, but certain
of such records, or copies thereof, are held in the
custody of one or more of the Federal Reserve Banks.
Any such records subject to this section will be made
available for inspection or copying during regular
business hours at the offices of the Board of Governors
of the Federal Reserve System in the Federal Reserve
Building, 20th and Constitution Avenue, Washington,
D. C., 20551, or, in certain instances as provided in
paragraph (c) of this section, at the offices of one
or more designated Federal Reserve Banks.
(c) Obtaining access to records. - Any person
requesting access to records of the Committee shall
submit such request in writing to the Secretary of
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the Board of Governors of the Federal Reserve System.
In any case in which the records requested, or copies
thereof, are available at a Federal Reserve Bank, the
Secretary of the Board may so advise the person re
questing access to the records.
Every request for
access to records of the Committee shall state the
full name and address of the person requesting them
and shall describe such records in a manner reasonably
sufficient to permit their identification without
undue difficulty; and such person shall pay a fee in
an amount based upon $5 per hour for the time required
to locate such records and prepare them for inspection
plus 10 cents per standard page for any copying thereof.
SECTION 271.5--DEFERMENT OF AVAILABILITY
OF CERTAIN INFORMATION
(a) Deferred availability of information. - In
some instances, certain types of information of the
Committee are not published in the Federal Register
or made available for public inspection or copying
until after such period of time as the Committee may
determine to be reasonably necessary to avoid the
effects described in paragraph (b) of this section or
as may otherwise be necessary to prevent impairment
of the effective discharge of the Committee's statutory
responsibilities. For example, the Committee's current
economic policy directive adopted at each meeting of
the Committee is published in the Federal Register
approximately 90 days after the date of its adoption;
and no information in the records of the Committee
relating to the adoption of any such directive is
made available for public inspection or copying before
it is published in the Federal Register.
(b) Reasons for deferment of availability.
Publication of, or access to, certain information of
the Committee may be deferred because earlier disclo
sure of such information would
(1)
interfere with the orderly execution of
policies adopted by the Committee in the
performance of its statutory functions;
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(2) permit speculators and others to gain
unfair profits or to obtain unfair
advantages by speculative trading in
securities, foreign exchange, or other
wise;
(3)
result in unnecessary or unwarranted
disturbances in the securities market;
(4)
make open market operations more costly;
(5)
interfere with the orderly execution of
the objectives or policies of other
Government agencies concerned with
domestic or foreign economic or fiscal
matters; or
(6)
interfere with, or impair the effective
ness of, financial transactions with
foreign banks, bankers, or countries that
may influence the flow of gold and of
dollar balances to or from foreign
countries.
SECTION 271.6--INFORMATION NOT DISCLOSED
Except as may be authorized by the Committee, in
formation of the Committee that is not available to the
public through other sources will not be published or
made available for inspection, examination, or copying by
any person if such information
(1)
is exempted from disclosure by statute
or executive order;
(2)
relates solely to internal personnel
rules or practices or other internal
practices of the Committee;
(3)
relates to trade secrets or commercial
or financial information obtained from
any person and privileged or confidential;
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(4)
is contained in inter-agency or intra
agency memoranda or letters, including
records of deliberations and discussions
at meetings of the Committee and reports
and documents filed by members or staff
of the Committee that would not be
routinely available to a private party
in litigation with the Committee;
(5)
is contained in personnel, medical, or
similar files (including financial files)
the disclosure of which would constitute
a clearly unwarranted invasion of personal
privacy; or
(6)
is contained in or related to examination,
operating, or condition reports prepared
by, on behalf of, or for the use of any
agency responsible for the regulation or
supervision of financial institutions.
Except as provided by or pursuant to this Part, no person
shall disclose, or permit the disclosure of, any informa
tion of the Committee to any person, whether by giving out
or furnishing such information or copy thereof, by allowing
any person to inspect, examine or produce such information
or copy thereof, or by any other means, whether the
information is located at the offices of the Board of
Governors of the Federal Reserve System, any Federal Reserve
Bank, or elsewhere, unless such disclosure is required in
the performance of duties for, or pursuant to the direction
of, the Committee. Any person who may be denied access to
records of the Committee may, within 5 days thereafter, file
with the Committee a written request for review of such action.
SECTION 271.7--SUBPOENAS
(a) Advice by person served. - If any person, whether or
not an officer or employee of the Committee, of the Board of
Governors of the Federal Reserve System, or of a Federal
Reserve Bank, has information of the Committee that may not be
disclosed by reason of sections 271.5 or 271.6 of this Part
and in connection therewith is served with a subpoena, order, or
other process requiring his personal attendance as a witness or
the production of documents or information upon any proceeding,
he should promptly inform the Secretary of the Committee of such
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service and of all relevant facts, including the docu
ments and information requested and any facts that may be
of assistance in determining whether such documents or
information should be made available; and he should take
action at the appropriate time to inform the court or
tribunal that issued the process, and the attorney for
the party at whose instance the process was issued, if
known, of the substance of this Part.
(b) Appearance by person served. - Except as dis
closure of the relevant information is authorized pursuant
to this Part, any person who has information of the
Committee and is required to respond to a subpoena or
other legal process shall attend at the time and place
therein mentioned and decline to disclose such information
or give any testimony with respect thereto, basing his
refusal upon this Part. If, notwithstanding, the court or
other body orders the disclosure of such information, or
the giving of such testimony, the person having such
information of the Committee shall continue to decline to
disclose such information and shall promptly report the
facts to the Committee for such action as the Committee
may deem appropriate.
By unanimous vote, section 1 of the Federal Open Market
Committee's rules of organization was revised, effective July 4, 1967.
The amended rules of organization read as follows:
RULES OF ORGANIZATION
SECTION 1--BASIS AND SCOPE
These rules are issued by the Federal Open Market
Committee (the "Committee") pursuant to the requirement
of section 552 of Title 5 of the United States Code
that every agency shall publish in the Federal Register
a description of its central and field organization.
SECTION 2--COMPOSITION AND MEETINGS OF COMMITTEE
(a) Members. - The Federal Open Market Committee
consists of the members of the Board of Governors of
the Federal Reserve System and five representatives of
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6/20/67
the Federal Reserve Banks who are Presidents or First
Vice Presidents of such Banks. The representatives
of the Federal Reserve Banks, and an alternate for
each representative, are elected in accordance with
section 12A of the Federal Reserve Act for terms of
one year commencing on March 1 of each year.
(b) Chairman and Vice Chairman. - At its first
meeting on or after March 1 of each year, the Committee
selects a Chairman and a Vice Chairman from among its
membership.
(c) Meetings. - The Committee meets at Washington,
D. C., on call by the Chairman of the Board of Governors
of the Federal Reserve System or at the request of three
members of the Committee, at least four times each year
and oftener if deemed necessary.
SECTION 3--PERSONNEL
(a) Official Staff. - The official staff of the
Federal Open Market Committee includes its Secretary
and Assistant Secretaries, General Counsel and Assistant
General Counsel, and Economist and Associate Economists,
who perform the duties indicated by their titles. These
staff members are selected from among the officers and
employees of the Board of Governors of the Federal
Reserve System and the Federal Reserve Banks. In addi
tion, one of the Federal Reserve Banks is selected by
the Committee to execute transactions for the System
Open Market Account; and the Committee selects a Manager
of the System Open Market Account and a Special Manager
for foreign currency operations for such Account, both
of whom shall be satisfactory to such Federal Reserve
Bank.
(b) Others. - The services of other officers and
employees of the Board of Governors of the Federal
Reserve System and Federal Reserve Banks are made
available and are utilized by the Committee as required.
By unanimous vote, sections 272.1 and 272.3 of the Federal
Open Market Committee's rules of procedure were revised, and section
272.5 repealed, effective July 4, 1967.
procedure read as follows.
The amended rules of
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SECTION 272.1--BASIS AND SCOPE
This part is issued by the Federal Open Market
Committee (the "Committee") pursuant to the requirement
of section 552 of Title 5 of the United States Code that
every agency shall publish in the Federal Register its
rules of procedure.
SECTION 272.2--COMMITTEE ACTION
The function of the Committee is the direction
and regulation of open market operations which are
conducted by the Federal Reserve Banks. This involves
the determination of the policies which are to be
pursued with respect to open market operations by the
Federal Reserve Banks with a view to accommodating
commerce and business and with regard to their bearing
upon the general credit situation of the country,
together with consideration and action upon incidental
matters relating to the manner in which such operations
are to be conducted. The discharge of the Committee's
responsibilities requires the continuous gathering of
information and study of changing financial, economic,
and credit conditions and other pertinent considerations
by the members of the Committee and its personnel. These
activities are closely interrelated with other activities
of the Board of Governors of the Federal Reserve System
and the Federal Reserve Banks and all relevant informa
tion and views developed by these organizations are
available to the Committee. With this background,
action is taken by the Committee upon its own initiative
at periodic meetings held at least four times each year
and oftener if deemed necessary. Attendance at Committee
meetings is restricted to members of the Committee and
its official staff, including the Manager of the System
Open Market Account and the Special Manager for foreign
currency operations for such Account, the Presidents of
Federal Reserve Banks who are not at the time members of
the Committee, and such other advisers as the Committee
may invite from time to time. The Committee acts through
the adoption and transmittal of directives and regulations
to the Federal Reserve Banks. Operations in the System
Open Market Account are conducted pursuant to directives
issued by the Committee.
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SECTION 272.3--NOTICE AND PUBLIC PROCEDURE
There ordinarily will be no published notice of
proposed action by the Committee or public procedure
thereon, as described in section 553 of Title 5 of the
United States Code, because such notice and procedure
are impracticable, unnecessary, or contrary to the
public interest.
SECTION 272.4--EFFECTIVE DATE
Committee action ordinarily will be made effective
on the date the action is taken because the nature of
the subject matter and the action taken is such that the
public interest and the proper discharge of the Committee's
responsibilities so require.
By unanimous vote, the Committee approved the release to the
press and to other interested persons of the entries prepared for
the record of policy actions of the Committee approximately 90 days
after the meetings at which the policy actions were taken, and the
release of the entries prepared for the meetings held in 1967 through
April 4 at about the time the Committee's rules, as revised today,
were transmitted to the Federal Register.
By unanimous vote, the Committee approved the release to any
person on request of certain documents held at the Federal Reserve
Bank of New York containing information of the Committee, described
in the list dated May 17, 1967, prepared by the staff, with time
lags as indicated therein.
By unanimous vote, the Committee authorized a staff committee
consisting of the Committee's General Counsel, the Manager of the
System Open Market Account, the
Secretary of the Committee, and the
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Secretary of the Board of Governors, to authorize release to any
person on request documents held at the Federal Reserve Bank of
New York containing information of the Committee of types similar
to those for which the Committee had authorized release, with such
time lags as were considered appropriate by the staff committee
in light of the time lags the Committee had authorized for other
documents.
By unanimous vote, the Committee approved the transfer of
the original copy of the minutes for the Committee meetings held
in the calendar year 1961 to the National Archives, on the same
basis as the minutes for prior years had been transferred in 1964.
It was agreed that the next meeting of the Federal Open
Market Committee would be held on Tuesday, July 18, 1967, at 9:30 a.m.
The meeting adjourned.
Secretary
Cite this document
Federal Reserve (1967, June 19). FOMC Minutes. Fomc Minutes, Federal Reserve. https://whenthefedspeaks.com/doc/fomc_minutes_19670620
@misc{wtfs_fomc_minutes_19670620,
author = {Federal Reserve},
title = {FOMC Minutes},
year = {1967},
month = {Jun},
howpublished = {Fomc Minutes, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/fomc_minutes_19670620},
note = {Retrieved via When the Fed Speaks corpus}
}