fomc minutes · January 15, 1973

FOMC Minutes

Meeting of Federal Open Market Committee

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, January 16, 1973, at

9:30 a.m.

PRESENT:

Mr.

Burns, Chairman

Brimmer

Bucher

Coldwell

Daane

Eastburn

MacLaury

Mitchell

Robertson

Sheehan

Winn

Treiber, Alternate for Mr. Hayes

Messrs. Heflin, Mayo, and Balles,

Alternate Members of the Federal

Open Market Committee

Messrs. Morris, Kimbrel, and Clay, Presidents

of the Federal Reserve Banks of Boston,

Atlanta, and Kansas City, respectively

Mr. Holland, Secretary

Mr. Broida, Deputy Secretary

Messrs. Altmann and Bernard, Assistant

Secretaries

Mr. Hackley, General Counsel

Mr. O'Connell, Assistant General Counsel

Mr. Partee, Senior Economist

Mr. Axilrod, Economist (Domestic Finance)

Messrs. Bryant, Gramley, Green, Hersey, and

Hocter, Associate Economists

Mr. Holmes, Manager, System Open Market Account

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Mr. Melnicoff, Deputy Executive Director,

Board of Governors

Mr. Coyne, Special Assistant to the Board

of Governors

Mr. Chase, Associate Director, Division of

Research and Statistics, Board of

Governors

Messrs. Keir, Pierce, Wernick, and Williams,

Advisers, Division of Research and

Statistics, Board of Governors

Mr. Pizer, Adviser, Division of International

Finance, Board of Governors

Mr. Wendel, Chief, Government Finance Section,

Division of Research and Statistics,

Board of Governors

Mrs. Rehanek, Open Market Secretariat Assistant,

Office of the Secretary, Board of Governors

Mrs. Sherman, Secretary, Office of the

Secretary, Board of Governors

Mr. Leonard, First Vice President, Federal

Reserve Bank of St. Louis

Messrs. Eisenmenger, Debs, Parthemos, Taylor,

Scheld, and Andersen, Senior Vice

Presidents, Federal Reserve Banks of

Boston, New York, Richmond, Atlanta,

Chicago, and St. Louis, respectively

Messrs. Bodner and Doll, Vice Presidents,

Federal Reserve Banks of New York and

Kansas City, respectively

Mr. Davis, Adviser, Research and Statistics,

Federal Reserve Bank of New York

Mr. Feldberg, Secretary and Assistant Counsel,

Federal Reserve Bank of New York

Mr. Kaminow, Research Officer and Economist,

Federal Reserve Bank of Philadelphia

Mr. Sandberg, Manager, Acceptance and Securities

Departments, Federal Reserve Bank of New York

Mr. Bisignano, Economist, Federal Reserve

Bank of San Francisco

Mr. Miller, Economist, Federal Reserve Bank

of Minneapolis

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By unanimous vote, the minutes of actions taken at the

meeting of the Federal Open Market Committee on November 20-21,

1972, were approved.

The memorandum of discussion for the meeting of the Federal

Open Market Committee on November 20-21, 1972, was accepted.

By unanimous vote, the System open market transactions in

foreign currencies during the period December 19, 1972, through

January 15, 1973, were approved, ratified, and confirmed.

By unanimous vote, renewal for further periods of 3 months

of the eight System drawings on the National Bank of Belgium, the

two drawings on the Swiss National Bank, and the drawing on the

Bank for International Settlements maturing at various dates in

the period February 2-23, 1973, was authorized.

By unanimous vote, the open market transactions in Govern

ment securities, agency obligations, and bankers' acceptances

during the period December 19, 1972, through January 15, 1973, 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 for the System Account in

accordance with the following current economic policy directive:

The information reviewed at this meeting suggests

that real output of goods and services expanded much

more rapidly in the fourth quarter than in the third

quarter, and the unemployment rate declined. Wage

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rates have increased more rapidly in recent months than

earlier in the year. Consumer prices rose considerably

again in November. Wholesale prices of farm and food

products advanced sharply in December but those of

industrial commodities increased little. On January 11

the President announced Phase III of the economic stabi

lization program, which has among its major objectives

a further reduction in the rate of inflation. The over

all deficit in the U.S. balance of payments has remained

substantial in recent months, and U.S. merchandise imports

rose more than exports in November.

Growth in the narrowly and broadly defined money

stock was exceptionally rapid in December, after having

been moderate on average during the preceding 4 months.

In recent weeks interest rates on both short- and long

term securities have risen moderately. Effective

January 15, Federal Reserve discount rates were raised

one-half of a percentage point to 5 per cent.

In light of the foregoing developments, it is the

policy of the Federal Open Market Committee to foster

financial conditions consonant with the aims of the

economic stabilization program, including further abate

ment of inflationary pressures, sustainable growth in

real output and employment, and progress toward equilib

rium in the country's balance of payments.

To implement this policy, while taking account of

the forthcoming Treasury financing and possible credit

market developments, the Committee seeks to achieve

bank reserve and money market conditions that will

support slower growth in monetary aggregates over the

months ahead than occurred in the second half of last

year.

By unanimous vote, the Committee's By-Laws were rescinded.

By unanimous vote, the Committee's Regulation Relating to

Open Market Operations of Federal Reserve Banks was revised,

effective February 1, 1973, to read as follows:

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REGULATION RELATING TO OPEN MARKET OPERATIONS

OF FEDERAL RESERVE BANKS

SECTION 270.1 - AUTHORITY

This Part is issued by the Federal Open Market

Committee (the "Committee") pursuant to authority

conferred upon it by sections 12A and 14 of the

Federal Reserve Act (12 U.S.C. §§ 263, 355).

SECTION 270.2 - DEFINITIONS

(a) The term "obligations" means Government

securities, U. S. agency securities, bankers' accep

tances, bills of exchange, cable transfers, bonds,

notes, warrants, debentures, and other obligations

that Federal Reserve Banks are authorized by law to

purchase and sell.

(b) The term "Government securities" means direct

obligations of the United States (i.e., U. S. bonds,

notes, certificates of indebtedness, and Treasury bills)

and obligations fully guaranteed as to principal and

interest by the United States.

gations that are direct obligations of, or are fully

guaranteed as to principal and interest by, any agency

of the United States.

(d) The term "System Open Market Account" means

the obligations acquired pursuant to authorizations and

directives issued by the Committee and held on behalf

of all Federal Reserve Banks.

SECTION 270.3 - GOVERNING PRINCIPLES

As required by section 12A of the Federal Reserve

Act, the time, character, and volume of all purchases

and sales of obligations in the open market by Federal

Reserve Banks are governed with a view to accommodating

commerce and business and with regard to their bearing

upon the general credit situation of the country.

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SECTION 270.4 - TRANSACTIONS IN OBLIGATIONS

(a) Each Federal Reserve Bank shall engage in open

market operations under section 14 of the Federal Reserve

Act only in accordance with this Part and with the autho

rizations and directives issued by the Committee from

time to time, and no Reserve Bank shall decline to engage

in open market operations as directed by the Committee.

(b) Transactions for the System Open Market Account

shall be executed by a Federal Reserve Bank selected by

the Committee. The participations of the several Federal

Reserve Banks in such Account and in the profits and

losses on transactions for the Account shall be allocated

in accordance with principles determined by the Committee

from time to time.

conditions as are prescribed by law and in authorizations

and directives issued by the Committee, the Reserve Bank

selected by the Committee is authorized and directed

(1) To buy and sell Government securities and

U. S. agency securities in the open market for the System

Open Market Account, and to exchange maturing securities

with the issuer;

(2) To buy and sell bankers' acceptances of the

kinds made eligible for purchase under Part 202 of this

chapter [Regulation B] in the open market for its own

account;

(3) To buy Government securities, U. S. agency

securities, and bankers' acceptances of the kinds described

above, under agreements for repurchase of such obligations,

in the open market for its own account; and

(4) To buy and sell foreign currencies in the

form of cable transfers in the open market for the System

Open Market Account and to maintain for such Account

reciprocal currency arrangements with foreign banks among

those designated by the Board of Governors of the Federal

Reserve System under § 214.5 of this chapter [Regulation N].

(d) In accordance with such limitations, terms, and

conditions as are prescribed by law and in authorizations

and directives issued by the Committee, the Reserve Bank

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selected by the Committee (or, if that Bank is closed,

any other Federal Reserve Bank) is authorized and directed,

for its own account or the System Open Market Account, to

purchase directly from the United States such amounts of

Government securities as may be necessary from time to

time for the temporary accommodation of the Treasury Depart

ment.

(e) The Federal Reserve Banks are authorized and

directed to engage in such other operations as the Commit

tee may from time to time determine to be reasonably nec

essary to the effective conduct of open market operations

and the effectuation of open market policies.

By unanimous vote, the Committee's Rules of Organization

were revised, effective February 1, 1973, to read as follows:

RULES OF ORGANIZATION

SECTION 1 - AUTHORITY

These rules are issued by the Federal Open Market Com

mittee (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 OF COMMITTEE

(a) Members. - The Committee consists of the seven

members of the Board of Governors of the Federal Reserve

System (the "Board") and five representatives of the

Federal Reserve Banks, each of whom is a President or a

First Vice President of a Reserve Bank.

(b) Reserve Bank representatives. - The representatives

of the Federal Reserve Banks, and an alternate for each

representative, are elected by the boards of directors of

the Reserve Banks in accordance with section 12A of the

Federal Reserve Act (12 U.S.C. § 263) for terms of one year

commencing on March 1 of each year. Prior to the first

meeting of the Committee on or after March 1 of each year,

each member of the Committee representing the Federal

Reserve Banks shall cause a record of his election and of

the election of his alternate to be forwarded to the

Secretary of the Committee. If any question is raised as

to the election or eligibility of a member or alternate,

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the Committee determines such question before such member

or alternate participates in a meeting of the Committee.

In the event a member is absent from a meeting of the

Committee, his alternate, in attending the meeting, shall

have the same status as the member for whom he is serving.

If a member or alternate ceases to be a President or First

Vice President of a Reserve Bank, a successor may be

chosen in a special election by the boards of directors

of the appropriate Reserve Bank or Banks and such successor

serves until the next annual election.

and each alternate take the same oath of office as that

prescribed by statute to be taken by officers of the United

States.

SECTION 3 - CHAIRMAN AND VICE CHAIRMAN

meeting on or after March 1 of each year,

At its first

the Committee elects a Chairman and a Vice Chairman from

among its membership. The Chairman presides at all meetings

of the Committee and performs such other duties as the Com

mittee may require. The Vice Chairman performs the duties

of the Chairman in the absence of the Chairman. In the

absence of both the Chairman and the Vice Chairman of the

Committee, the Vice Chairman of the Board acts as Chairman

of the Committee; and, in the absence of the Chairman and

the Vice Chairman of the Committee and the Vice Chairman of

the Board, the member of the Board present with the longest

service as a member of the Board acts as Chairman of the

Committee.

SECTION 4 - STAFF

(a) Selection of staff officers. - At its first meeting

on or after March 1 of each year, the Committee selects,

from among the officers and employees of the Board and the

Federal Reserve Banks, the following staff officers to serve

until the first meeting on or after March 1 of the next

following year: Secretary, Deputy Secretary, and one or

more Assistant Secretaries; General Counsel and one or more

Assistant General Counsel; and Economists, one or more of

whom may be designated as Senior or Associate Economists or

given titles reflecting their areas of particular special

ization.

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(b) Secretary and Deputy and Assistant Secretaries.

The Secretary keeps minutes of actions and records of dis

cussions at all meetings of the Committee; he maintains a

complete record of the actions taken by the Committee upon

all questions of policy relating to open market operations;

and he records the votes taken in connection with the deter

mination of open market policies and the reasons underlying

each such action. He has custody of such minutes and

records, and he performs such other duties as the Committee

may require. In the absence of the Secretary of the Com

mittee, the Deputy Secretary or an Assistant Secretary acts

as Secretary pro tem.

of the Committee and present to it such information regard

ing business and credit conditions and domestic and inter

national economic and financial developments as will assist

the Committee in the determination of open market policies,

and they perform such other duties as the Committee may

require.

(d) General Counsel and Assistant General Counsel.

The General Counsel furnishes such legal advice as the

Committee may require. In the absence of the General

Counsel, an Assistant General Counsel acts as General

Counsel pro tem.

(e) Filling of vacancies. - At any meeting the Commit

tee may fill any vacancy in the offices described in this

section.

(f) Other staff assistance. - The services of any

officers and employees of the Board and the Federal

Reserve Banks are made available and are utilized by the

Committee as required.

SECTION 5 - MANAGER AND SPECIAL MANAGER

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 satis

factory to the Federal Reserve Bank selected by the Com

mittee to execute open market transactions for such

Account, and both of whom serve at the pleasure of the

Committee. The Manager and Special Manager keep the

Committee informed on market conditions and on trans

actions they have made and render such reports as the Com

mittee may specify.

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-10By unanimous vote, the Committee's Rules regarding the

Availability of Information were amended, effective February 1,

1973, to read as follows:

RULES REGARDING AVAILABILITY OF INFORMATION

SECTION 271.1 - AUTHORITY

This Part is issued by the Federal Open Market Com

mittee (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 for

the guidance of the public descriptions of the estab

lished 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 of the Federal Reserve System (the "Board"),

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 information 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 Title 5 of the United States Code,

and subject to the provisions of §§ 271.5 and 271.6, the

Committee publishes in the Federal Register, in addition

to this Part,

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-11(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 interpretation of gen

eral applicability formulated 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 includes a

complete record of the actions taken by the Committee

during the preceding year upon all matters of policy

relating to open market operations, showing the votes

taken and the reasons underlying such actions.

time, other information relating to open market opera

tions of the Federal Reserve Banks is published in the

Federal Reserve Bulletin, issued monthly by the Board,

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 §§ 271.5 and 271.6. Records falling within the

exemptions from disclosure set forth in section 552(b)

of Title 5 of the United States Code and in § 271.6 may

nevertheless be made available in accordance with this

section to the fullest extent consistent, in the

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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, 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 busi

ness hours at the offices of the Board 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.

ing access to records of the Committee shall submit such

request in writing to the Secretary of the Board. In any

case in which

are available

the Board may

the records.

the records requested, or copies thereof,

at a Federal Reserve Bank, the Secretary of

so advise the person requesting access to

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 identi

fication 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 copy

ing 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 avail

able 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 dis

charge of the Committee's statutory responsibilities.

For example, the Committee's current economic policy

directive adopted at each meeting of the Committee is

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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 or is otherwise released to the public

by the Committee.

(b) Reasons for deferment of availability.

Publication of, or access to, certain information of the

Committee may be deferred because earlier disclosure of

such information would

(1) interfere with the orderly execution of

policies adopted by the Committee in the performance of

its statutory functions;

(2) permit speculators and others to gain unfair

profits or to obtain unfair advantages by speculative trad

ing in securities, foreign exchange, or otherwise;

(3) result in unnecessary or unwarranted distur

bances 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 effectiveness of,

financial transactions with foreign banks, bankers, or coun

tries 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, infor

mation 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

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(a) is exempted from disclosure by statute or

executive order;

(b) relates solely to internal personnel rules

or practices or other internal practices of the Commit

tee;

financial information obtained from any person and privi

leged or confidential;

(d) 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;

(e)

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

(f) 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 reproduce such informa

tion or copy thereof, or by any other means, whether the

information is located at the offices of the Board, 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.

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-15SECTION 271.7 - SUBPOENAS

(a) Advice by person served. - If any person, whether

or not an officer or employee of the Committee, of the

Board, or of a Federal Reserve Bank, has information of

the Committee that may not be disclosed by reason of

§ 271.5 or § 271.6 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

service and of all relevant facts, including the documents

and information requested and any facts that may be of

assistance in determining whether such documents or infor

mation 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 Com

mittee 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 informa

tion 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 appro

priate.

By unanimous vote, the Committee's Rulesof Procedure were

revised, effective February 1, 1973, to read as follows:

RULES OF PROCEDURE

SECTION 272.1 - AUTHORITY

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.

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SECTION 272.2 - FUNCTIONS OF THE COMMITTEE

The procedures followed by the Committee are

designed to facilitate the effective performance of

the Committee's statutory functions with respect to

the regulation and direction of open market operations

conducted by the Federal Reserve Banks and with respect

to certain direct transactions between the Reserve

Banks and the United States. In determining the poli

cies to be followed in such operations, the Committee

considers information regarding business and credit

conditions and domestic and international economic

and financial developments, and other pertinent infor

mation gathered and submitted by its staff and the

staffs of the Board of Governors of the Federal Reserve

System (the "Board") and the Federal Reserve Banks.

Against the background of such information, the Commit

tee takes actions from time to time to regulate and

direct the open market operations of the Reserve Banks.

Such policy actions ordinarily are taken through the

adoption and transmission to the Federal Reserve Banks

of regulations, authorizations, and directives.

SECTION 272.3 - MEETINGS

(a) Place and frequency. - The Committee meets in

Washington, D. C., at least four times each year and

oftener if deemed necessary. Meetings are held upon

the call of the Chairman of the Board or at the request

of any three members of the Committee. Notices of

calls by the Chairman of the Board to other members are

given by the Secretary of the Committee in writing or

by telegram. Requests of any three members for the

calling of a meeting shall state the time therefor and

shall be filed in writing or by telegram with the Secre

tary who shall forthwith notify all members of the Com

mittee in writing or by telegram. When the Secretary

has sent notices to all members of the Committee that

a meeting has been requested by three members and of

the time therefor, a meeting is deemed to have been

called. If, in the judgment of the Chairman, circum

stances require that a meeting be called at such short

notice that one or more members cannot be present in

Washington, such members may participate in the meeting

by telephone conference arrangements.

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(b) Alternates. - Whenever any member of the Com

mittee representing Federal Reserve Banks shall find

that he will be unable to attend a meeting of the

Committee, he shall promptly notify his alternate and

the Secretary of the Committee in writing or by tele

gram, and upon receipt of such notice the alternate

shall advise the Secretary whether he will attend such

meeting.

present and acting in the absence of members) constitute

a quorum for the transaction of business; but less than

a quorum may adjourn from time to time until a quorum is

in attendance.

(d) Attendance at meetings. - Attendance at Committee

meetings is restricted to members and alternate members of

the Committee, the Presidents of Federal Reserve Banks who

are not at the time members or alternates, staff officers

of the Committee, the Manager and Special Manager, and such

other advisers as the Committee may invite from time to time.

(e) Meeting agendas. - The Secretary, in consultation

with the Chairman, prepares an agenda of matters to be

discussed at each meeting and the Secretary transmits the

agenda to the members of the Committee within a reasonable

In general, the agendas

time in advance of such meeting.

include approval of minutes of actions and acceptance of

memoranda of discussion for previous meetings; reports by

the Manager and Special Manager on open market operations

since the previous meeting, and ratification by the Com

mittee of such operations; reports by Economists on, and

Committee discussion of, the economic and financial

situation and outlook; Committee discussion of monetary

policy and action with respect thereto; and such other

matters as may be considered necessary.

SECTION 272.4 - COMMITTEE ACTIONS

(a) Actions at meetings. - Actions are taken at

meetings of the Committee except as described below.

(b) Actions between meetings. - Special circumstances

may make it desirable in the public interest for Committee

members to consider an action to modify an outstanding

Committee authorization or directive at a time when it is

not feasible to call a meeting. Whenever, in the judgment

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of the Chairman, such circumstances have arisen, the

relevant information and recommendations for action are

transmitted to the members by the Secretary, and the

members communicate their votes to the Secretary. If

the action is approved by a majority of the members,

advice to that effect is promptly given by the Secretary

to the members of the Committee and to the Reserve Bank

selected to execute transactions for the System Open

Market Account. All communications of recommended

actions and votes under this paragraph shall be in

writing or by telegram; provided that, in exceptional

cases when that is not feasible, such communications

may be made orally, either in person or by telephone,

and the Secretary shall cause a written record to be

made without delay. An action taken between meetings

has the force and effect of an action at a meeting;

provided, however, that if a meeting is held before the

execution of any operations pursuant to the action, the

action is null and void unless it is ratified and con

firmed by the Committee at such meeting.

stances, the Committee may delegate authority to take

an action, subject to such instructions or guidelines

as the Committee deems proper. Such delegations of

authority may be made to the Chairman; to a subcommit

tee consisting of the Chairman and the Vice Chairman of

the Committee and the Vice Chairman of the Board (or in

the absence of the Chairman or of the Vice Chairman of

the Board the members of the Board designated by the

Chairman as alternates, and in the absence of the Vice

Chairman of the Committee his alternate); or to any

other member or members of the Committee. An action

taken pursuant to such a delegation of authority has

the force and effect of an action taken by the Committee.

(d) Effective date. - Committee action ordinarily

is made effective as of the time it 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. Occasionally,

however, the Committee may specify that an action is to

be effective at some different time.

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SECTION 272.5 - NOTICE AND PUBLIC PROCEDURE

There ordinarily is 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.

It was agreed that the next meeting of the Federal Open

Market Committee would be held on Tuesday, February 13, 1973,

at 9:30 a.m.

The meeting adjourned.

Secretary

Cite this document

APA

Federal Reserve (1973, January 15). FOMC Minutes. Fomc Minutes, Federal Reserve. https://whenthefedspeaks.com/doc/fomc_minutes_19730116

BibTeX

@misc{wtfs_fomc_minutes_19730116,
  author = {Federal Reserve},
  title = {FOMC Minutes},
  year = {1973},
  month = {Jan},
  howpublished = {Fomc Minutes, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/fomc_minutes_19730116},
  note = {Retrieved via When the Fed Speaks corpus}
}