Greenbook/Tealbook

Prefatory Note

The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the bestpreserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act.

1

In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing).

2

A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff.

Content last modified 6/05/2009.

CONFIDENTIAL (FR)

SUPPLEMENT CURRENT ECONOMIC AND FINANCIAL CONDITIONS

Prepared for the Federal Open Market Committee

By the Staff Board of Governors of the Federal Reserve System

July 2, 1964.

SUPPLEMENTAL NOTES

The Domestic Economy The labor market in June showed less strength than in earlier months this year.

The June statistics, together with the employment data

for May, suggest that some tapering off is taking place in the rate of expansion in employment.

Employment and the labor force which usually

rise very sharply in June did not go up as much as seasonally expected. Seasonally adjusted employment declined by 40O,00, but was still 1.8 million higher than last June. Unemployment increased to 5.3 per cent from 5.1 per cent in the previous month, the first increase shown in the unemployment rate All of the additional job seekers were males 20 years of age

this year.

or over, with a large part of the increase in the 20-24 years of age group largely college students and graduates. ployment rose to 9.2 per cent.

Fcr this age group unem-

In contrast, among teenagers unemployment

did not increase in June and there was a relatively large decline in their numbers in the labor force; apparently those in the younger group who did not find jobs. withdrew from the labor market and were not counted among the unemployed. A rise in unemployment also occurred among male workers

over

24 years of age, reversing the steady decline in unemployment in this group since late last year. in employment in June.

This age group also experienced a decline

The extent to which this reflects scme easing in

demand and the extent to which it

reflects sampling variations or offsets

to the unusually large employment gains reported in April of this year is difficult to say.

-2-

CHANGES, MAY - JUNE 1964 (Seasonally adjusted, in thousands)

Males -----

Labor force

Age

Employment

Unemployment

14-19

-184

-123

-61

20-24

60

- 31

91

-225

83

-142

25 and over

II

The Domestic Financial Situation Consumer credit. million in May, $12

Instalment credit outstanding rose $493

after seasonal adjustment.

This was well above the

million increase reported for April, but still

February and March.

below the highs of

The May rise was sparked by an expansion in

auto

credit, but the other major types of instalment credit also contributed to the over-all gain.

Errata The 6-month bill rate for March 31, 1964, should be 3.72 per cent instead of the 3.94 per cent shown in

text table on page III - 9.