FOMC Minutes

Meeting of the Federal Open Market Committee

May 6, 1981

Minutes of Actions

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

May 6, 1981, at 2:30 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. Boehne

Mr. Boykin

Mr. Corrigan

Mr. Gramley

Mr. Rice

Mr. Schultz

Mrs. Teeters

(New York)

(Philadelphia)

(Dallas)

Messrs. Balles (San Francisco), Black (Richmond), Ford

(Atlanta), Timlen (New York), and Winn (Philadelphia),

Alternate Members of the Federal Open Market Committee

Messrs. Guffey (Kansas City), Morris (Boston), and Roos

(St. Louis), Presidents of the Federal Reserve Banks of

Kansas City, Boston, and St. Louis, respectively

Mr. Axilrod, Staff Director

Mr. Bernard, Assistant Secretary

Mrs. Steele, Deputy Assistant Secretary

Mr. Mannion, Assistant General Counsel

Mr. Kichline, Economist

Messrs. Burns (Dallas), Danforth (Minneapolis), Ettin,

Keir, Mullineaux (Philadelphia), Prell, Scheld

(Chicago), Truman, and Zeisel, Associate Economists

Mr. Sternlight (New York), Manager for Domestic Operations,

System Open Market Account

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

System Open Market Account

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5/6/81

Mr. Coyne, Assistant to the Board of Governors

Mrs. Deck, Staff Assistant, Open Market Secretariat,

Board of Governors

Mr. Doyle (Chicago), First Vice President, Federal

Reserve Bank of Chicago

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

Eisenmenger (Boston), Fousek (New York), Keran

(San Francisco), Koch (Atlanta), and Parthemos

(Richmond), Senior Vice Presidents, Federal

Reserve Banks of St. Louis, Cleveland, Boston,

New York, San Francisco, Atlanta, and Richmond,

respectively

Mr. Gambs (Kansas City), Assistant Vice President,

Federal Reserve Bank of Kansas City

By unanimous vote the Committee agreed that through the period before

the next regular meeting the reserve path should continue to be set on the

basis of the short-run objectives for monetary growth established at its

meeting on March 31, recognizing that the federal funds rate might continue

to exceed the upper end of the range indicated for consultation at the

March 31 meeting.

The meeting adjourned.

Secretary