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 this document may contain occasional gaps in the text. These gaps are the result of a redaction process that removed information obtained on a confidential basis. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act.

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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 optimal 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.

CONFIDENTIAL (FR) CLASS III FOMC

September 22. 1995

SUPPLEMENT CURRENT ECONOMIC AND FINANCIAL CONDITIONS

Prepared for the Federal Open Market Committee

By the Staff Board of Governors of the Federal Reserve System

TABLE OF CONTENTS

Page THE FINANCIAL ECONOMY Tables

Selected financial market quotations . . . . . . . . . Commercial bank credit and short- and intermediate-term business credit . . . . . .

Selected Financial Market Quotations1 (Percent except as noted) 1994

1995

Instrument

Change to Sep. 21, 1995 from:

FOMC,

1994

1994

FOMC,

Feb. 3

High

Aug. 22

Sep. 21

Feb. 3

high

Aug. 22

3.07

5.66

5.72

5.80

2.73

0.14

0.08

3.13 327 3.52

5.78 6.38 6.84

5.46 5.45 5.54

5.24 5.29 5.30

2.11 2.02 1.78

-0.54 -1.09 -1.54

-0.22 -0.16 -0.24

3.16 3.25

6.13 6.32

5.84 5.83

5.80 5.69

2.64 2.44

-0.33 -0.63

-0.04 -0.14

3.11 3.25 3.41

6.10 6.39 6.89

5.77 5.78 5.82

5.70 5.68 5.67

2.59 2.43 2.26

-0.40 -0.71 -1.22

-0.07 -0.10 -0.15

1-month 3-month

3,06 3.25

6.06 6.38

5.78 5.81

5.69 5.69

2.63 2.44

-0.37 -0.69

-0.09 -0.12

Bank Prime Rate

6.00

8.50

8.75

8.75

2.75

0.25

0.00

4.60 5.81 6.31

7.82 8.04 8.16

621 6.57 6.89

5.91 6.21 6.56

1.31 0.40 0.25

-1.91 -1.83 -1.60

-0.30 -0.36 -0.33

Municipal revenue (Bond Buyer)5

5.49

7.37

6.44

6.18

0.69

-1.19

-0.26

Corporate-A Utility, recently offered

7.35

9.05

7.87

7.50

0.15

-1.55

-0.37

6.97 4.12

9.25 6.79

7.94 5.95

7.60 5.80

0.63 1.68

-1.65 -0.99

-0.34 -0.15

Short-term Rates Federal Funds2 Treasury Bills

3

3-month 6-month 1-year Commercial paper 1-month 3-month Large negotiable CDs3 1-month 3-month 6-month Eurodollar deposits4

Intermediate- and Long-term Rates U.S. Treasury (constant maturity) 3-year 10-year 30-year

Home mortgages 6 FHLMC 30-yr fixed rate FHLMC 1-yr adjustable rate Record high

1989

1995

Low,

FOMC,

Stock Exchange Index

Level

Date

Jan. 3

Aug. 22

Dow-Jones Industrial

4801.80

9/14/95

2144.64

4620.42

NYSE Composite

314.33

9/21/95

154.00

NASDAQ (OTC)

1067.40

9/13/95

378.56

Percentage change to Sep. 21 from: Record

1989

FOMC.

high

low

Aug. 22

4767.40

-0.72

122.29

3.18

300.16

312.71

-0,52

103.06

4.18

1025.29

1058.51

-0.83

179.61

3.24

Sep. 21

Wilshire 5843.27 9/21/95 2718.59 5574.66 5815.15 -0,48 113.90 4.31 1. One-day quotes except as noted. 2. Average for two-week reserve maintenance period closest to date shown. Last observation is average to date for maintenance period ending September 27, 1995. 3. Secondary market. 4. Bid rates for Eurodollar deposits at 11 a.m. London time. 5. Most recent observation based on one-day Thursday quote and futures market index changes. 6. Quotes for week ending Friday previous to date shown.

Commercial Bank Credit and Short- and Intermediate-Term Business Credit (Percentage change; seasonally adjusted annual rate) 1

Type of credit

1994

1995 Q1

1995 Q2

1995 Jun

1995 Jul

1995 Aug

Level, Aug 1995 (billions of $)

Commercial bank credit 1. Total loans and securities

6.8

7.8

13.1

4.8

3.2

5.3

3,519.6

2.

4.9

-5.0

17.4

-1.7

-14.0

8.4

975.6

0.0

-6.0

-5.1

-2.0

-13.1

6.9

702.0

23.9

-2.1

88.2

-1.3

-15.7

12.4

273.6

7.6

13.0

11.4

7.4

9.9

4.1

2,544.0

Securities

3.

U.S. government

4.

Other

5.

Loans

6.

Business

9.2

16.8

11.1

4.4

7.0

3.1

694.7

7.

Real estate

6.4

11.9

7.3

8.4

11.1

5.9

1,061.8

8.

Consumer

15.2

12.9

11.7

13.4

8.0

14.0

487.3

9.

Security

-17.2

-9.1

69.3

11.4

-26.9

-57.8

79.0

3.6

15.0

12.5

-2.2

31.2

.5

221.1

10.

Other

Short- and intermediate-term business credit 11. Business loans net of bankers acceptances

9.4

17.8

11.6

3.5

6.5

3.9

687.9

12. Loans at foreign branches 2

5.1

17.6

21.9

9.6

14.3

0.0

25.5

13. Sum of lines 11 and 12

9.2

17.7

12.0

3.7

6.8

3.7

713.4

14. Commercial paper issued by nonfinancial firms

1.2

22.1

20.7

-29.1

27.8

30.4

185.9

15. Sum of lines 13 and 14

7.6

18.6

13.7

-3.0

11.0

9.1

899.3

16. Bankers acceptances, U.S. traderelated 3,4

-8.3

-21.2

-4.5

-13.6

-6.9

n.a.

17.35

17. Loans at finance companies 4

12.6

20.3

14.8

11.6

4.0

n.a.

387.45

8.7

18.5

13.7

8.7

n.a.

18. Total (sum of lines 15, 16, and 17)

1.2

1,297.2

1. Except as noted, levels are averages of Wednesday data and percentage changes are based on averages of Wednesday data. For years, "percentage change" is percentage change in quarterly average from fourth quarter of preceding year to fourth quarter of specified year. For quarters, it is the percentage change in quarterly average from preceding quarter to specified quarter, annualized. Data are adjusted for breaks caused by reclassification. 2. Loans to U.S. firms made by foreign branches of domestically chartered banks. 3. Acceptances that finance U.S. imports, U.S. exports, and domestic shipment and storage of goods. 4. Levels and changes are based on averages of month-end data. 5. July 1995. n.a. Not available.

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