FOMC Minutes
Meeting of Federal Open Market Committee
March 20, 1979
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, March 20,
1979, beginning at 9:30 a.m.
PRESENT:
Mr. Miller, Chairman
Mr. Volcker, Vice Chairman
Mr. Balles
Mr. Black
Mr. Coldwell
Mr. Kimbrel
Mr. Mayo
Mr. Partee
Mrs. Teeters
Mr. Wallich
Messrs. Guffey, Morris, Roos, and Winn,
Alternate Members of the Federal Open
Market Committee
Messrs. Baughman, and Eastburn, Presidents of
the Federal Reserve Banks of Dallas and
Philadelphia, respectively
Mr.
Mr.
Mr.
Mr.
Altmann,
Bernard,
Mannion,
Axilrod,
Secretary
Assistant Secretary
Assistant General Counsel
Economist
Messrs. Brandt, Ettin, Henry, Keir, Keran,
Kichline, Scheld, Truman, and Zeisel,
Associate Economists
Mr. Holmes, Manager System Open Market
Account
Mr. Pardee, Deputy Manager for Foreign
Operations
3/20/79
- 2 Mr. Sternlight, Deputy Manager for
Domestic Operations
Mr. Coyne, Assistant to the Board of
Governors
Mr. Kalchbrenner, Associate Director,
Division of Research and Statistics,
Board of Governors
Ms. Farar, Economist, Open Market
Secretariat, Board of Governors
Mrs. Deck, Staff Assistant, Open Market
Secretariat, Board of Governors
Messrs. Gainor and McIntosh, First Vice
Presidents, Federal Reserve Banks
of Minneapolis and Boston, respectively
Messrs. Balbach, J. Davis, and Eisenmenger,
Senior Vice Presidents, Federal
Reserve Banks of St. Louis, Cleveland,
and Boston, respectively
Messrs. Broaddus, Burns, Danforth, T.
Davis, Fousek, and Mullineaux, Vice
Presidents, Federal Reserve Banks
of Richmond, Dallas, Minneapolis,
Kansas City, New York, and Philadelphia,
respectively
Ms. Clarkin, Securities Trading Officer,
Federal Reserve Bank of New York
In the agenda for this meeting, it was reported
that advices of the election of the following members and
alternate members of the Federal Open Market Committee for
the year commencing March 1, 1979, had been received by the
Secretary and the named individuals had executed their oaths
of office.
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3/20/79
3 -
The elected members and alternate members were
as follows:
Robert P. Black, President of the Federal Reserve Bank of
Richmond, with Frank E. Morris, President of the
Federal Reserve Bank of Boston, as alternate,
Paul A. Volcker, President of the Federal Reserve Bank of
New York, with Thomas M. Timlen, First Vice President
of the Federal Reserve Bank of New York, as alternate;
Robert P. Mayo, President of the Federal Reserve Bank of
Chicago, with Willis J. Winn, President of the Federal
Reserve Bank of Cleveland, as alternate;
Monroe Kimbrel, President of the Federal Reserve Bank of
Atlanta, with Lawrence K. Roos, President of the
Federal Reserve Bank of St. Louis, as alternate;
John J. Balles, President of the Federal Reserve Bank of
San Francisco, with Roger Guffey, President of the
Federal Reserve Bank of Kansas City, as alternate.
By unanimous vote, the following officers of the Federal
Open Market Committee were elected to serve until the election
of their successors at the first meeting of the Committee
after February 29, 1980, with the understanding that in the
event of
the discontinuance of their official connection
with the Board of Governors or with a Federal Reserve Bank,
as the case might be, they would cease to have any official
connection with the Federal Open Market Committee:
G. William Miller
Paul A. Volcker
Murray Altmann
Normand R. V. Bernard
Chairman
Vice Chairman
Secretary
Assistant Secretary
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3/20/79
Neal L. Petersen
James H. Oltman
Robert E. Mannion
Stephen H. Axilrod
General Counsel
Deputy General Counsel
Assistant General Counsel
Economist
Harry Brandt,Richard G. Davis,
Edward Ettin, George Henry,
Peter M. Keir, Michael
Keran, James L. Kichline,
James Parthemos, Karl
Scheld, Edwin M. Truman,
Joseph S. Zeisel
Associate Economists
Secretary's note:
On March 6, 1979, certain
continuing authorizations of the Committee,
listed below, had been distributed by the
Secretary with the advice that, in accordance
with procedures approved by the Committee,
they were being called to the Committee's
attention before the March organization meeting
to give members an opportunity to raise any
Members
questions they had concerning them.
were asked to so indicate if they wished to
have any of the authorizations in question
placed on the agenda for consideration at this
meeting, and no such requests were received.
The authorizations in question were as follows:
1.
Procedures for allocation of securities
in the System Open Market Account.
2.
List of Treasury Department officials to
whom weekly reports on open market opera
tions may be sent.
3.
Authority for the Chairman to appoint a
Federal Reserve Bank as agent to operate
the System Account in case the New York
Bank is unable to function.
4.
Resolutions providing for continued opera
tion of the Committee and for certain
actions by the Reserve Banks during an
emergency.
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3/20/79
5 -
5.
Resolution relating to examinations of the
System Open Market Account.
6.
Guidelines for the conduct of System opera
tions in Federal agency issues.
7.
Regulation relating to Open Market Opera
tions of Federal Reserve Banks.
8.
Rules of Organization, Rules Regarding
Availability of Information, and Rules of
Procedure.
By unanimous vote, the Federal Reserve Bank of New
York was selected to execute transactions for the System
Open Market Account until the adjournment of the first
meeting of the Federal Open Market Committee after February
29, 1980.
By unanimous vote, Alan R. Holmes, Peter D.
Sternlight, and Scott E.
Pardee were selected to serve at
the pleasure of the Committee in the capacities of Manager
of the System Open Market Account, Deputy Manager for
Domestic Operations, and Deputy Manager for Foreign Operations,
respectively, on the understanding that their selection was
subject to their being satisfactory to the Federal Reserve
Bank of New York.
Secretary's note:
Advice was subsequently
received that the selections indicated above
were satisfactory to the Federal Reserve
Bank of New York.
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3/20/79
By unanimous vote, the minutes of actions taken at
the meetings of the Federal Open Market Committee held on
February 6 and March 2,
1979, were approved.
By unanimous vote, System open market transactions
in foreign currencies during the period February 6 through
March 19, 1979, were ratified.
By unanimous vote, System open market transactions
in Government securities, agency obligations, and bankers'
acceptances during the period February 6 through March 19,
1979, were ratified.
With Messrs. Coldwell, Kimbrel, Volcker, and
Wallich dissenting, 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 domestic policy directive:
The information reviewed at this meeting
suggests that in the current quarter growth in
real output of goods and services has moderated
from the rapid rate in the last quarter of 1978,
while the rise in prices has accelerated.
In
January and February the dollar value of total
retail sales rose slightly further. Nonfarm
payroll employment continued to expand over the
two-month period, but in part because of severe
weather, industrial production increased little.
The unemployment rate in February, at 5.7 per
cent, was virtually unchanged from its level in
January and in late 1978.
Over recent months,
on balance, the index of average hourly earnings
has continued to rise rapidly.
3/20/79
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7 -
The trade-weighted value of the dollar against
major foreign currencies has shown no net change
since early February. The U. S. trade deficit in
January was larger than the monthly average in the
fourth quarter of 1978, to some extent because of
a bulge in imports of oil.
M-1 declined in both January and February, in
part because of the continuing effects of the growth
of the automatic transfer service. With market
interest rates continuing high, inflows of the
interest-bearing deposits included in M-2 and M-3
remained at reduced levels, despite substantial
flows into money market certificates at both
commercial banks and nonbank thrift institutions.
Over the two months, consequently, M-2 changed
little and M-3 grew at a relatively slow rate.
The behavior of all three monetary aggregates was
affected by shifts of funds from deposits to money
market mutual funds and other liquid assets.
Most
market interest rates have risen in recent weeks,
after having declined in January.
Taking account of past and prospective develop
ments in employment, unemployment, production, in
vestment, real income, productivity, international
trade and payments, and prices, it is the policy of
the Federal Open Market Committee to foster monetary
and financial conditions that will resist inflationary
pressures while encouraging moderate economic expansion
and contributing to a sustainable pattern of inter
national transactions. The Committee agreed that
these objectives would be furthered by growth of M-1,
M-2, and M-3 from the fourth quarter of 1978 to the
fourth quarter of 1979 within ranges of 1-1/2 to
4-1/2 percent, 5 to 8 percent, and 6 to 9 percent,
respectively. The associated range for bank credit
is 7-1/2 to 10-1/2 percent.
These ranges will be
reconsidered in July or at any time as conditions
warrant.
In the short run, the Committee seeks to achieve
bank reserve and money market conditions that are
broadly consistent with the longer-run ranges for
monetary aggregates cited above, while giving due
regard to the program for supporting the foreign
exchange value of the dollar and to developing
conditions in domestic financial markets. Early
in the period before the next regular meeting,
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3/20/79
System open market operations are to be directed at
maintaining the weekly average federal funds rate at
about the current level.
Subsequently, operations
shall be directed at maintaining the weekly average
federal funds rate within the range of 9-3/4 to 10-1/2
percent.
In deciding on the specific objective for
the federal funds rate the Manager shall be guided
mainly by the relationship between the latest esti
mates of annual rates of growth in the March-April
period of M-1 and M-2 and the following ranges of
tolerance:
4 to 8 percent for M-1 and and 3-1/2 to
7-1/2 percent for M-2.
If, with approximately equal
weight given to M-1 and M-2, their rates of growth
appear to be significantly above or below the mid
points 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 above the upper limit or below the lower limit
of the indicated ranges at a time when the objective
for the funds rate has already been moved to the
corresponding limit of its range, the Manager will
promptly notify the Chairman, who will then decide
whether the situation calls for supplementary
instructions from the Committee.
By unanimous vote, renewal for further periods of
3 months of System drawings on the German Federal Bank maturing
March 31, 1979,
through April 27, 1979, was authorized.
It was agreed that the authorization for the lending
of Government securities from the System Open Market Account,
contained in paragraph 3 of the Authorization for Domestic
Open Market Operations, should be retained at this time,
subject to review in six months.
By unanimous vote, the Authorization for Domestic
Open Market Operations shown below was reaffirmed:
3/20/79
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AUTHORIZATION FOR DOMESTIC OPEN MARKET OPERATIONS
1.
The Federal Open Market Committee authorizes and directs
the Federal Reserve Bank of New York, to the extent necessary
to carry out the most recent domestic policy directive adopted
at a meeting of the Committee:
(a)
To buy or sell U. S. Government securities,
including securities of the Federal Financing Bank, and
securities that are direct obligations of, or fully
guaranteed as to principal and interest by, any agency
of the Unites States in the open market, from or to
securities dealers and foreign and international accounts
maintained at the Federal Reserve Bank of New York, on
a cash, regular, or deferred delivery basis, for the
System Open Market Account at market prices, and, for such
Account, to exchange maturing U. S. Government and
Federal agency securities with the Treasury or the
individual agencies or to allow them to mature without
replacement; provided that the aggregate amount of U. S.
Government and Federal agency securities held in such
Account (including forward commitments) at the close of
business on the day of a meeting of the Committee at which
action is taken with respect to a domestic policy directive
shall not be increased or decreased by more than $3.0
billion during the period commencing with the opening of
business on the day following such meeting and ending
with the close of business on the day of the next such
meeting;
(b)
When appropriate, to buy or sell in the open
market, from or to acceptance dealers and foreign accounts
maintained at the Federal Reserve Bank of New York, on a
cash, regular, or deferred delivery basis, for the account
of the Federal Reserve Bank of New York at market discount
rates, prime bankers
acceptances with maturities of up
to nine months at the time of acceptance that (1) arise
out of the current shipment of goods between countries
or within the United States, or (2) arise out of the
storage within the United States of goods under contract
of sale or expected to move into the channels of trade
within a reasonable time and that are secured through
out their life by a warehouse receipt or similar document
3/20/79
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conveying title to the underlying goods; provided that
acceptances held at
the aggregate amount of bankers
any one time shall not exceed $100 million;
To buy U. S. Government securities, obligations
(c)
that are direct obligations of, or fully guaranteed as
to principal and interest by, any agency of the United
States, and prime bankers
acceptances of the types
authorized for purchase under 1(b) above, from dealers
for the account of the Federal Reserve Bank of New York
under agreements for repurchase of such securities,
obligations, or acceptances in 15 calendar days or less,
at rates that, unless otherwise expressly authorized by
the Committee, shall be determined by competitive bidding,
after applying reasonable limitations on the volume of
agreements with individual dealers; provided that in the
event Government securities or agency issues covered by
any such agreement are not repurchased by the dealer
pursuant to the agreement or a renewal thereof, they
shall be sold in the market or transferred to the System
Open Market Account; and provided further that in the
event bankers
acceptances covered by any such agreement
are not repurchased by the seller, they shall continue
to be held by the Federal Reserve Bank or shall be sold
in the open market.
The Federal Open Market Committee authorizes and directs
2.
the Federal Reserve Bank of New York, or, under special cir
cumstances, such as when the New York Reserve Bank is closed,
any other Federal Reserve Bank, to purchase directly from
the Treasury for its own account (with discretion, in cases
where it seems desirable, to issue participations to one or
more Federal Reserve Banks) such amounts of special short
term certificates of indebtedness as may be necessary from
time to time for the temporary accommodation of the Treasury;
provided that the rate charged on such certificates shall
below the discount rate of the
be a rate 1/4 of 1 percent
Federal Reserve Bank of New York at the time of such pur
chases, and provided further that the total amount of such
certificates held at any one time by the Federal Reserve
Banks shall not exceed $2 billion.
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3.
In order to insure the effective conduct of open market
operations, the Federal Open Market Committee authorizes
and directs the Federal Reserve Banks to lend U. S. Govern
ment securities held in the System Open Market Account to
Government securities dealers and to banks participating
in Government securities clearing arrangements conducted
through a Federal Reserve Bank, under such instructions as
the Committee may specify from time to time.
4.
In order to ensure the effective conduct of open market
operations, while assisting in the provision of short-term
investments for foreign and international accounts maintained
at the Federal Reserve Bank of New York, the Federal Open
Market Committee authorizes and directs the Federal Reserve
Bank of New York, (a) for System Open Market Account, to
sell U. S. Government securities to such foreign and inter
national accounts on the bases set forth in paragraph 1(a)
under agreements providing for the resale by such accounts
of those securities within 15 calendar days on terms com
parable to those available on such transactions in the
market; and (b) for New York Bank account, when appropriate,
to undertake with dealers, subject to the conditions imposed
on purchases and sales of securities in paragraph 1(c),
repurchase agreements in U. S. Government and agency securities,
and to arrange corresponding sale and repurchase agreements
between its own account and foreign and international accounts
maintained at the Bank.
Transactions undertaken with such
accounts under the provisions of this paragraph may provide
for a service fee when appropriate.
By unanimous vote, the Authorization for Foreign
Currency Operations shown below was reaffirmed:
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3/20/79
AUTHORIZATION FOR FOREIGN CURRENCY OPERATIONS
1.
The Federal Open Market Committee authorizes and
directs the Federal Reserve Bank of New York, for System
Open Market Account, to the extent necessary to carry
out the Committee's foreign currency directive and express
authorizations by the Committee pursuant thereto, and in
conformity with such procedural instructions as the
Committee may issue from time to time:
A.
To purchase and sell the following foreign
currencies in the form of cable transfers through
spot or forward transactions on the open market at
home and abroad, including transactions with the
U. S. Treasury, with the U. S. Exchange Stabiliza
tion Fund established by Section 10 of the Gold
Reserve Act of 1934, with foreign monetary
authorities, with the Bank for International
Settlements, and with other international
financial institutions:
Austrian schillings
Belgian francs
Canadian dollars
Danish kroner
Pounds sterling
French francs
German marks
Italian lire
Japanese yen
Mexican pesos
Netherlands guilders
Norwegian kroner
Swedish kronor
Swiss francs
To hold balances of, and to have outstanding
B.
forward contracts to receive or to deliver, the
foreign currencies listed in paragraph A above.
3/20/79
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C.
To draw foreign currencies and to permit
foreign banks to draw dollars under the
reciprocal currency arrangements listed in
paragraph 2 below, provided that drawings by
either party to any such arrangement shall
be fully liquidated within 12 months after
any amount outstanding at that time was
first drawn, unless the Committee, because
of exceptional circumstances, specifically
authorizes a delay.
open position
D.
To maintain an overall
in all foreign currencies not exceeding
$1.0 billion, unless a larger position is
For
expressly authorized by the Committee.
this purpose, the overall open position in
all foreign currencies is defined as the
sum (disregarding signs) of net positions
in individual currencies. The net position
in a single foreign currency is defined as
holdings of balances in that currency,
plus outstanding contracts for future
receipt, minu: outstanding contracts for future
delivery of that currency, i.e., as the
sum of these elements with due regard to
sign. 1/2/
1/
2/
Effective December 28, 1976, the Federal Open
Market Committee authorized the Federal Reserve
Bank of New York to maintain an overall
open
position in foreign currencies exceeding the
figure of $1 billion specified in this paragraph
by an amount equal to the remaining forward
commitment associated with the System's out
standing 1971 Swiss franc swap drawings. At
this meeting, the Committee reaffirmed this
special authorization.
On December 19, 1978, the Committee authorized
all overall open position in foreign currencies
of $8.0 billion (excluding the authorization
relating to outstanding 1971 Swiss franc swap
drawings cited in the preceding footnote).
3/20/70
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2.
The Federal Open Market Committee directs the Federal
Reserve Bank of New York to maintain reciprocal currency
arrangements ("swap" arrangements) for the System Open
Market Account for periods up to a maximum of 12 months
with the following foreign banks, which are among those
designated by the Board of Governors of the Federal
Reserve System under Section 214.5 of Regulation N,
Relations with Foreign Banks and Bankers, and with the
approval of the Committee to renew such arrangements
on maturity:
Foreign bank
Austrian National Bank
National Bank of Belgium
Bank of Canada
National Bank of Denmark
Bank of England
Bank of France
German Federal Bank
Bank of Italy
Bank of Japan
Bank of Mexico
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
Bank for International
Settlements:
Dollars against Swiss francs
Dollars against authorized
European currencies other
than Swiss francs
Amount of
arrangement
(Millions of
dollars equivalent)
250
1,000
2,000
250
3,000
2,000
6,000
3,000
5,000
360
500
250
300
4,000
600
1,250
Any changes in the terms of existing swap arrangements, and
the proposed terms of any new arrangements that may be
authorized, shall be referred for review and approval to the
Committee.
3/20/79
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3.
Currencies to be used for liquidation of System swap
commitments may be purchased from the foreign central
bank drawn on, at the same exchange rate as that employed
Apart from any such
in the drawing to be liquidated.
purchases at the rate of the drawing, all transactions
in foreign currencies undertaken under paragraph 1(A)
above shall, unless otherwise expressly authorized by
the Committee, be at prevailing market rates.
4.
It shall be the normal practice to arrange with foreign
central banks for the coordination of foreign currency trans
In making operating arrangements with foreign
actions.
on System holdings of foreign currencies, the
banks
central
Bank of New York shall not commit itself
Reserve
Federal
to maintain any specific balance, unless authorized by the
Federal Open Market Committee. Any agreements or under
standings concerning the administration of the accounts
maintained by the Federal Reserve Bank of New York with
the foreign banks designated by the Board of Governors
under Section 214.5 of Regulation N shall be referred for
review and approval to the Committee.
5.
Foreign currency holdings shall be invested insofar as
practicable, considering needs for minimum working balances.
Such investments shall be in accordance with Section 14(e)
of the Federal Reserve Act.
6.
All operations undertaken pursuant to the preceding
paragraphs shall be reported daily to the Foreign Currency
Subcommittee. The Foreign Currency Subcommittee consists
of the Chairman and Vice Chairman of the Committee, the
Vice Chairman of the Board of Governors, and such other
member of the Board as the Chairman may designate (or in the
absence of members of the Board serving on the Subcommittee,
other Board Members designated by the Chairman as alternates,
and in the absence of the Vice Chairman of the Committee,
Meetings of the Subcommittee shall be called
his alternate).
at the request of any member, or at the request of the Manager,
for the purposes of reviewing recent or contemplated operations
and of consulting with the Manager on other matters relating
At the request of any member of the
to his responsibilities.
Subcommittee, questions arising from such reviews and con
sultations shall be referred for determination to the
Federal Open Market Committee.
3/20/79
7.
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16 -
The Chairman is authorized:
A. With the approval of the Committee, to
enter into any needed agreement or under
standing with the Secretary of the Treasury
about the division of responsibility for foreign
currency operations between the System and
the Treasury;
B. To keep the Secretary of the Treasury fully
advised concerning System foreign currency
operations, and to consult with the Secretary on
policy matters relating to foreign currency
operations;
C. From time to time, to transmit appropriate
reports and information to the National Advisory
Council on International Monetary and Financial
Policies.
8. Staff officers of the Committee are authorized to trans
mit pertinent information on System foreign currency opera
tions to appropriate officials of the Treasury Department.
9. All Federal Reserve Banks shall participate in the
foreign currency operations for System Account in accordance
with paragraph 3 G(1) of the Board of Governors' Statement
of Procedure with Respect to Foreign Relationships of
Federal Reserve Banks dated January 1, 1944.
By unanimous vote, the Foreign Currency Directive
was amended to read as follows:
3/20/79
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17 -
FOREIGN CURRENCY DIRECTIVE
1.
System operations in foreign currencies shall generally
be directed at countering disorderly market conditions,
provided that market exchange rates for the U. S. dollar
reflect actions and behavior consistent with the IMF Article
IV, Section 1.
2.
To achieve this end the System shall:
A.
Undertake spot and forward purchases
and sales of foreign exchange.
B.
Maintain reciprocal currency ("swap")
arrangements with selected foreign central
banks and with the Bank for International
Settlements.
C.
Cooperate in other respects with central
banks of other countries and with Inter
national monetary institutions.
3..
Transactions may also be undertaken:
A.
To adjust System balances in light of
probable future needs for currencies.
B.
To provide means for meeting System
and Treasury commitments in particular
currencies, and to facilitate operations
of the Exchange Stabilization Fund.
C.
For such other purposes as may be
expressly authorized by the Committee.
4.
System foreign currency operations shall be conducted:
A.
In close and continuous consultation and
cooperation with the United States Treasury;
In cooperation, as appropriate, with
B.
foreign monetary authorities; and
C.
In a manner consistent with the obligations
of the United States in the International
Monetary Fund regarding exchange arrangements
under the IMF Article IV.
3/20/79
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18 -
With Mr. Coldwell dissenting,the Procedural Instruc
tions with respect to Foreign Currency Operations were amended
to read as follows:
PROCEDURAL INSTRUCTIONS WITH RESPECT TO
FOREIGN CURRENCY OPERATIONS
In conducting operations pursuant to the authoriza
of the Federal Open Market Committee as
and
direction
tion
for Foreign Currency Operations
Authorization
forth
in
the
set
and the Foreign Currency Directive, the Federal Reserve Bank
of New York, through the Manager of the System Open Market
Account, shall be guided by the following procedural under
standings with respect to consultations and clearance with
the Committee, the Foreign Currency Subcommittee, and the
Chairman of the Committee. All operations undertaken pursuant
to such clearances shall be reported promptly to the Committee.
1. The Manager shall clear with the Subcommittee (or with
the Chairman, if the Chairman believes that consultation
with the Subcommittee is not feasible in the time available):
A. Any operation which would result in a change
in the System's overall open position in foreign
currencies exceeding $300 million or any day or
$600 million since the most recent regular meeting
of the Committee.
B. Any operation which would result in a change
or any day in the System's net position in a
single foreign currency exceeding $150 million,
or $300 million when the operation is associated
with repayment of swap drawings.
C. Any operation which might generate a substantial
volume of trading in a particular currency by the
System, even though the change in the System's net
position in that currency might be less than the
limits specified in 1B.
D. Any swap drawing proposed by a foreign bank not
exceeding the larger of (i) $200 million or (ii) 15
per cent of the size of the swap arrangement.
3/20/79
- 19 -
2.
The Manager shall clear with the Committee (or with the
Subcommittee, if the Subcommittee believes that consulation
with the full Committee is not feasible in the time available,
or with the Chairman, if the Chairman believes that consulta
tion with the Subcommittee is not feasible in the time
available);
Any operation which would result in a change in
A.
the System's overall open position in foreign
currencies exceeding $1.5 billion since the most
recent regular meeting of the Committee.
B.
Any swap drawing proposed by a foreign bank
exceeding the larger of (i) $200 million or (ii)
15 per cent of the size of the swap arrangement.
3.
The Manager shall also consult with the Subcommittee or
the Chairman about proposed swap drawings by the System, and
about any operations that are not of a routine character.
It was agreed that the next meeting of the Committee
would be held on Tuesday, April 17, 1979, beginning at 9:30
a.m.
Secretary
Cite this document
Federal Reserve (1979, March 19). FOMC Minutes. Fomc Minutes, Federal Reserve. https://whenthefedspeaks.com/doc/fomc_minutes_19790320
@misc{wtfs_fomc_minutes_19790320,
author = {Federal Reserve},
title = {FOMC Minutes},
year = {1979},
month = {Mar},
howpublished = {Fomc Minutes, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/fomc_minutes_19790320},
note = {Retrieved via When the Fed Speaks corpus}
}