FOMC Minutes

Meeting of the Federal Open Market Committee

December 12, 1980

Minutes of Actions

A meeting of the Federal Open Market Committee was held on Friday,

December 12, 1980, at 12:40 p.m., at the call of Chairman Volcker.

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. Solomon, Vice Chairman

Mr. Gramley

Mr. Guffey

Mr. Morris

Mr. Partee

Mr. Rice

Mr. Roos

Mr. Schultz

Mrs. Teeters

Mr. Winn

(New York)

(Kansas City)

(Boston)

(St. Louis)

(Atlanta)

(Cleveland)

Messrs. Balles (San Francisco), Baughman (Dallas), and Mayo

(Chicago), Alternate Members of the Federal Open Market

Committee

Messrs. Black (Richmond), Corrigan, and Ford (Atlanta),

Presidents of the Federal Reserve Banks of Richmond,

Minneapolis, and Atlanta, respectively

Mr.

Mr.

Mr.

Mr.

Mr.

Mr.

Altmann, Secretary

Bernard, Assistant Secretary

Petersen, General Counsel

Oltman (New York), Deputy General Counsel

Holmes (New York), Adviser for Market Operations

Axilrod, Economist

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

Ettin, Henry, Keir, Kichline, Truman, and Zeisel,

Associate Economists

Mr. Pardee (New York), Manager for Foreign Operations,

System Open Market Account

11/18/80

- 2 -

Mr. Sternlight (New York), Manager for Domestic

Operations, System Open Market Account

Mr. Allison, Secretary, Office of the Secretary, Board

of Governors

Mr. Coyne, Assistant to the Board of Governors

Mr. Prell, Associate Director, Division of Research and

Statistics, Board of Governors

Mr. Beck, Senior Economist, Banking Section, Division of

Research and Statistics, Board of Governors

Mrs. Deck, Staff Assistant, Open Market Secretariat,

Board of Governors

Messrs. McIntosh (Boston), and Smoot (Philadelphia), First

Vice Presidents, Federal Reserve Banks of Boston and

Philadelphia, respectively

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

(Dallas), Danforth (Minneapolis), Fousek (New York),

Keran (San Francisco), Parthemos (Richmond), and

Scheld, Senior Vice Presidents, Federal Reserve

Banks of Philadelphia, Atlanta, Dallas, Minneapolis,

New York, San Francisco, Richmond, and Chicago,

respectively

Mrs. Nichols (Chicago), Vice President, Federal Reserve

Bank of Chicago

Mr. Burger (St. Louis), Assistant Vice President, Federal

Reserve Bank of St. Louis

Mr. Campbell (New York), Assistant Secretary, Federal

Reserve Bank of New York

With Mrs. Teeters dissenting, the Committee modified the domestic

policy directive issued on November 18, 1980, and subsequently modified on

November 26 and December 5, to extend through the period before the next

regular meeting leeway for pursuit of the Committee's short-run objectives for

the behavior of reserve aggregates without operations being precisely con

strained by the 18 percent upper limit of the intermeeting range for the

federal funds rate.

The meeting adjourned.

Secretary