FOMC Minutes

Meeting of Federal Open Market Committee

May 6,

1980

MINUTES OF ACTIONS

A meeting of the Federal Open Market Committee was

held on Tuesday, May 6,

1980.

This was a telephone conference

meeting, and each individual was in Washington, D.

C.,

except

as otherwise indicated in parentheses in the following list

of those participating.

PRESENT:

Mr. Volcker, Chairman

Mr. Guffey

Mr. Morris

Mr. Rice

Mr. Roos

Mr. Schultz

Mr. Solomon

Mrs. Teeters

Mr. Wallich

(Kansas City)

(Boston)

(St. Louis)

(New York)

Messrs. Baughman (Dallas), Eastburn (Philadelphia),

Mayo (Chicago), and Willes (Minneapolis),

Alternate Members of the Federal Open Market

Committee

Messrs. Balles (San Francisco), and Black

(Richmond), Presidents of the Federal

Reserve Banks of San Francisco and Richmond

Mr.

Mr.

Mr.

Mr.

Altmann, Secretary

Bernard, Assistant Secretary

Petersen, General Counsel

Axilrod, Economist

Messrs. Balbach (St. Louis), J. Davis

(Cleveland), T. Davis (Kansas City),

Eisenmenger (Boston), Kichline, Truman,

and Zeisel, Associate Economists

Mr. Sternlight (New York), Manager for

Domestic Operations, System Open

Market Account

Mr. Coyne, Assistant to the Board of

Governors

5/6/80

- 2 Mrs. Deck, Staff Assistant, Open Market

Secretariat

Messrs. Forrestal (Atlanta), and MacDonald

(Cleveland), First Vice Presidents,

Federal Reserve Banks of Atlanta and

Cleveland

Messrs. Brandt (Atlanta), Boehne (Philadelphia),

Burns (Dallas), and Scheld (Chicago),

Senior Vice Presidents, Federal Reserve

Banks of Atlanta, Philadelphia, Dallas,

and Chicago, respectively

Messrs. Bisignano (San Francisco), Broaddus

(Richmond), Cacy (Kansas City), and

Danforth (Minneapolis), Vice Presidents,

Federal Reserve Banks of San Francisco,

Richmond, Kansas City, and Minneapolis,

respectively

With Messrs. Guffey, Solomon, and Wallich dissenting

the Committee reduced the lower limit of the intermeeting range

for the federal funds rate specified in the outstanding domestic

policy directive to 10-1/2 percent, thereby, establishing a

range of 10-1/2 to 19 percent.

Secretary