Bluebook

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Content last modified 6/05/2009. (CONFIDENTIAL FR) August 17, 1973 MONETARY AGGREGATES AND MONEY MARKET CONDITIONS Prepared for the Federal Open Market Committee By the Staff BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM CONFIDENTIAL (FR) August 17, 1973 MONETARY AGGREGATES AND MONEY MARKET CONDITIONS Recent developments (1) M 1 growth was at about a 6 per cent annual rate in July and, with recent data pointing to a slowdown in August, it appears that for the July-August target period M 1 expansion will fall somewhat short of the range of tolerance set by the Committee. Growth in M2 , on the other hand, appears to be running above the upper end of its target range. The unexpected strength in M 2 reflects a strong consumer response in early August to the higher rates offered by banks on consumer-type deposits following liberalization of Regulation Q ceilings. Growth of Monetary Aggregates and RPD in June-July Target Period Ranges of Tolerance Latest Estimates Reserve and Monetary Aggregates (Growth at SAAR in per cent) 11-1/2--13-1/2 14 M1 3-3/4--5-3/4 3-1/2 M2 4-1/2-6-1/2 7-1/2 RPD Statement week avg. Memo: Federal funds rate (Per cent per annum) As adopted and subsequently amended 9--11 8/8 10.39 8/15 10.39 (2) Growth in RPD over July-August also is expected to be above the upper limit of the Committee's range of tolerance, expected growth in as greater than CD's and nondeposit sources added to required reserves. In addition, the implementation of the hike in required reserves in the week ended July 25 absorbed more reserves than we had allowed for because of a misestimation in (3) In the deposit mix. the two statement weeks following the last FOMC meeting, incoming data suggested that July-August growth rates in all monetary aggregates might approach and possibly exceed the upper end of their respective target ranges. tive posture in Accordingly, the Desk assumed a more restric- the provision of reserves, and the Federal funds rate averages for both of these weeks slightly exceeded the 10-1/2 per cent upper limit of the constraint set by the Committee at its July meeting. Against this background a majority of Committee members agreed on August 3 to raise the ceiling for the Federal funds rate to 11 per cent in order to provide room for maneuver if further restraint on reserve provision should prove necessary. (4) Short-term interest rates rose sharply further during most of the period since the July FOMC meeting in response to high rates on Federal funds and changed expectations as to the possible severity of monetary restraint. Rates on large certificates of deposits and banker's acceptances have paced this general advance, as banks sought funds aggres- sively in response to continued strong credit demands. Advances in Treasury -3bill rates lagged somewhat behind other short-term rate increases over most of July but then began catching up in early August, partly in response to the Treasury's auction of $2.0 billion of September 1973 tax bills and a sizable offering of short- and intermediate-term securities by the Federal Home Loan Banks. (5) Given sharp upward market rate adjustments, the increase in the discount rate to 7-1/2 per cent on August 13 had little term rates. impact on short- Market participants generally interpreted the increase as representing an adjustment to a higher market rate structure rather than a signal of a further tightening in policy. Indeed, a general credit market rally began to develop around mid-August and short rates, particularly Treasury bill rates, declined from recent intermeeting highs. Most recently the 3-month Treasury bill was trading at around 8.70 per cent bid. (6) Long-term market interest rates increased substantially after the July Committee meeting, but late in the period there was a strong bond market rally. With the combined new issue calendar for corporate and municipal securities continuing on the light side, the further rise in long-term yields appeared to reflect mainly a reaction to the sharp rise in short-term rates. The strong rally in recent days appears to have been based on an attitudinal shift stemming from good international news and the thought that the monetary aggregates may be now under control. Moreover, rumors of heavy buying of Treasury coupon issues arising out of Middle East oil transactions further bulled the market, given the larger dealer short positions. (7) The Treasury encountered great difficulty in its mid-August refunding operation, which involved the auctioning of $4.5 billion in new -4- issues to redeem $4.7 billion publicly held issues maturing August 15, addition to the auction of September tax anticipation bills, the Treasury sold at auction $2 billion of a reopened, 7-3/4 per cent, 4-year note, and $500 million of a 7-1/2 per cent, 20-year bond. Bidding for both coupon issues was quite weak, and it was necessary for government accounts to support the market by buying outstanding securities and by acquiring about one-half of the bond issue in the auction. Subsequently, however, the market for both of these coupon issues has improved markedly, and the bond and note are now about 5 and 2 points respectively above their auction prices. (8) Mortgage rates also increased further during the inter- meeting period, with an 8.71 per cent rate set in the latest FNMA mortgage auction--up 33 basis points since mid-July and 67 basis points since midJune. In addition to moving in general sympathy with other long-term rates, the continued rise in mortgage rates reflects an apparently sharp curtailment in the extension of commitments by thrift institutions--a cutback generated by net outflows of deposit funds in the latter part of July and early August. To meet these deposit outflows and cover the continuing takedowns of outstanding loan commitments, savings and loan associations have been borrowing heavily from their Federal Home Loan Banks in recent weeks, and the FHLB System in turn has raised a large volume of funds in the market for payment later this month. Under the circumstances, both savings and loan and FHLB System liquidity has declined, and mutual savings banks are reported to have been liquidating securities and drawing on outstanding lines of credit at commercial banks. -5(9) The table on the next page shows (in percentage annual rates of change) selected monetary and financial flows over various recent time periods. A new Appendix table III shows quarterly growth rates for money supply calculated in two ways--by comparing average levels for all three months of the quarter and by comparing levels in the final months of the quarter. Past Calendar 12 Months Past 6 Months Past 3 Months Dec. '72 over Dec. '69 July '73 over July '72 July '73 over Jan. '73 July '73 over April '73 Total reserves 8.4 9.6 5.8 10.4 26.2 Nonborrowed reserves 8.8 6.4 7.0 23.4 -44.1 Reserves available to support private nonbank deposits 9.0 11.5 10.5 14.7 7.5 6.8 7.1 9.8 M2 (M1 plus time deposits at commercial banks other than large CD's) 11.3 8.6 7.5 M3 (MN plus deposits at thrift institutions) 12.8 10.1 8.4 8.5 5.7 Total member bank deposits (bank credit proxy adj.) 10.7 12.8 14.0 11.0 9.4 Loans and investments of commercial banks2/ 12.4 15.6 13.5 11.3 10.8 .9 2.2 3.4 1.9 2.5 0.1 -0.2 -10.3 0.3 0.5 Years Past Past Month July '73 over June '73 7.6 Concepts of Money M 1 (currency plus 1/ demand deposits)- .7 5.9 5.5 Bank Credit Short-term market paper (Monthly ave. change in billions) Large CD's Nonbank commercial paper I/ Other than interbank and U.S. Government. Includes loans sold to affiliates and branches. Based on month-ead figures. 2/ NOTE: All items are based on averages of daily figures, except for data an total loans and investments of commercial banks, commercial paper, and thrift institutions--which are either end-of-nonth or last-Wednesday-of-month figures. Prospective developments (10) Three alternative policy strategies are summarized below for Committee consideration. More detailed figures, including estimates into the future for M3 as well as the narrower money supply concepts, are shown in the table on the following page. Alt. A Alt. B Alt. C M1 4-3/4 3-3/4 2-3/4 M2 7-1/2 6-1/2 5-1/2 10-1/2 9-3/4 Targets (3rd & 4th qtrs. combined) Credit proxy 9 Associated ranges for August-September 1973 13-1/2--15-1/2 RPD M 2-1/2-- 4-1/2 8-1/2--10-1/2 M2 Federal funds rate range 9--10-1/2 13--15 12-1/2--14-1/2 2--4 1-1/2--3-1/2 7-3/4-- 9-3/4 7--9 9-1/2--11-1/2 10--12-1/2 (inter-meeting period) (11) The three alternatives include the same M1 growth rates for the second half of 1973 as in the previous Blue Book. Alternative B repre- sents a continuation of the longer-run growth path for M1 reaffirmed at the last Committee meeting and depicted in the chart following p. 7-a. The longer-term growth rates for the other key monetary variables associated with each M1 - 7-a - Alternative Longer-Run Targets for Key Monetary Aggregates 1973 Alt. A Alt. B Alt. C 547.8 551.8 555.0 863.4 867.8 873.5 863.4 867.5 872.6 863.4 867.3 871.5 560.3 889.3 885.5 881.5 Alt. A Alt. B Alt. C Alt. A Alt. B Alt. July Aug. Sept. 264.5 264.8 266.1 264.5 264.7 265.8 264.5 264.6 264.5 547.8 552.2 556.4 547.8 552.0 555.8 bec. 269.4 268.1 266.8 565.9 563.2 C Rates of Growth 1973 Quarters: 3rd. Q. 4th. Q. 4.4 5.0 4.0 3.5 3.5 2.0 8.1 6.8 7.7 5.3 6.6 7.2 6.1 5.9 5.6 Months: Aug. Sept. 1.4 5.9 0.9 0.5 4.1 9.6 9.1 9.2 8.3 6.1 7.9 5.7 7.1 5.4 5.8 Total Reserves , Alt. A Alt. B Alt. C Alt. A Alt. 8B Alt. C 5.0 _ Adjusted gredit Proxy Alt. C Alt. B Alt. A 1973 4.6 Pl. Sept. 437.9 444.8 449.7 437.9 444.7 449.3 437.9 444.6 449.1 33,550 33,938 34,515 33,550 33,937 34,484 33,550 33,936 34,454 31,299 31,991 32,480 31,299 31,990 32,450 31,299 31,989 32,420 ftec. 457.7 455.8 454.1 35,411 35,310 35,200 33,046 32,949 32,843 14.1 8.7 15.9 7.0 15.5 6.2 15.1 5.2 .0 10.5 18.3 10.5 17.3 10.5 16.2 July Aug. Rates of Growth ruarters: 1973 3rd Q. 4th Q. ohths: Aug. Sept. 14.0 7.1 13.6 5.8 13.4 4.5 14.8 10.4 14.5 9.6 18.9 13.5 18.6 12.4 18.4 12.1 - 3.0 20.4 - 3.0 19.3 - -- -- - 18.3 MONEY SUPPLY AND LONGER RUN TARGET PATH RATIO SCALE, BILLIONS OF DOLLARS - 270 ^- - 51'A% GROWTH - 260 MI LEVEL FOR MARCH EXPECTED AT 3/19 FOMC--,..--, 250 S II II II II N O 1972 I I J I I F I I M I I I A N I II J J 1973 _ A . I I S I 0 N D growth rate have been changed to reflect the behavior of time deposits following the early July changes in Regulation Q ceiling rates. In addition, the funds rate ranges associated with the three alternatives have also been raised somewhat, reflecting in part the upward revisions in projected nominal GNP. (12) The recent sharp rise in short-term interest rates will be limiting money demand in the months ahead. in nominal GNP is As a result, even though growth expected to remain substantial, M 1 may expand at a rela- tively slow pace between now and year-end, given prevailing money market conditions. range is ditions. For alternative B, a 9-1/2--11-1/2 per cent Federal funds rate shown. This range is symmetrical around current money market con- Staff judgment and model forecasts suggest that the odds are better than even that some decline in the funds rate will develop if the alternative B targets for the aggregates are pursued, given the degree of restraint already built into the system. (13) In the August-September period M1 growth under alternative B is indicated to be in a 2--4 per cent annual rate range. growth rate is shown for August, A particularly low reflecting in part drawdowns in cash balances for investment in higher yielding time deposits, especially the newly available, widely advertised long-term savings certificates. time stock adjustment is likely to be short-lived in its However, such a oneeffects on cash balances mainly held for transactions purposes or for normal financial market operations. -9(14) Under alternative B, over the next two months, M 2 expansion in a 7-3/4--9-3/4 per cent annual rate range is indicated. The faster in- crease in M2 relative to M1 results mainly from the initial sizable movement into consumer-type time and savings deposits at banks in regulatory changes. The initial inflow probably reflected not only some movement out of demand deposits but, more importantly, nonbank thrift institutions. the wake of the shifts of funds from We have assumed a gradual phasing out of transfers from thrift institutions to banks, though we do not expect it to subside as promptly as transfers out of demand deposits because of the maturity distribution of thrift institution deposits and a certain inertia in shifting deposits from one institution to another. siderably more moderate rise in On balance, consumer type time deposits is a con- expected in September than in August, and a further tapering appears in prospect for the fourth quarter. (15) Growth of M3 in the August-September period--at around 5-1/2--7-1/2 per cent annual rate--is expected to be more moderate than in M2, since the shift in funds from thrift institutions to banks raise the M2 figures relative to M3 . By the fourth quarter, we would expect most of this divergence to disappear, and growth rates of consumer-type time and savings deposits at banks and thrift institutions are both projected at around 7 per cent. (16) Looking to all three money concepts, by the fourth quarter M1 is indicated to be expanding at a 3-1/2 per cent annual rate under alternative B, while M2 and M3 growth is respectively. expected to be around 5-1/2 and 6 per cent, For M2 and M3, since early 1970. these would be lowest quarterly growth rates -10- (17) The aggregates are specified alternative C and more under alternative A. to show less growth under Under alternative C, the funds rate is expected to rise into the upper part of a 10 to 12-1/2 per cent range between now and mid-September. The wider range specified under this alternative reflects what we presume to be an icreasing difficulty in forcing the public to further economize on cash holdings at a time when interest rates have already increased to historically high levels. Under alternative A, we would expect the funds rate to drop between now and the next meeting, though perhaps not to the bottom of the indicated range. (18) sented are: Other key assumptions in the monetary relationships pre- (a) continued strength in business loan demand on banks; (b) some reduction in demand for consumer and mortgage credit; (c) continued active demand by banks for large CD funds, though perhaps less aggressive demand than in the past four months taken as a whole; (d) greater bank reluctance to participate in the securities market, particularly under alternative C, in view of the wide spread of their borrowing costs over their return on portfolio. On balance, bank credit--as measured by the proxy--is expected to rise by around a 15--16 per cent annual rate in the August-September period, buoyed in part by a projected rise in U.S. Treasury deposits at commercial banks. Growth is likely to be considerably less rapid in the fourth quarter as credit demands fade somewhat, inflows of consumer-type time deposits abate, and Treasury deposits at banks decline. -11(19) Most short-term rates appear to have adjusted to a 10-1/2 per cent funds rate. The 3-month Treasury bill rate was low relative to the funds rate during the inter-meeting period, and the recent market rally has carried it even lower. Some upward movement in the bill rate from recent levels can be expected if money market conditions remain taut, in sympathy with continued strong demands in the short-term area by banks, business, and Federal agencies. In addition, the bill market could be particularly affected if foreign central banks sell bills in the market or liquidate Treasury specials in financing a return flow of funds to the U.S. (20) Given the still wide spread of short- over long- rates, it would appear that the recent market rally may have carried long rates lower than is sustainable. However, market participants are now especially sensitive to clues regarding System policy, and long-term rates could decline further if the market comes to believe that the aggregates are under control and monetary restraint has peaked. With the market as sensitive as it is, a significant move in the funds rate in either a tightening or easing direction is likely to be accompanied by prompt and rather sizable sympathetic adjustments in other interest rates. -12- Proposed directive (21) Presented below are three alternative formulations for the operational paragraph of the directive, which are intended to correspond to the similarly lettered policy alternatives discussed in the preceding section. For all three alternatives it is proposed to delete the reference to international developments in the dollar. light of the recent strong recovery of Retention of the reference to domestic financial developments is proposed only for alternative C, the one alternative that contemplates a significant tightening of the money market. alternatives refer to growth rates in As will be noted, all three the aggregates "thus far this year." For the period through July, these are as follows: M1, 6 per cent; M2, 7-1/2 per cent; and the bank credit proxy, 13-1/2 per cent. Alternative A internationl of account taking while To implement this policy, [DEL: Treasury forthcoming the and developments market financial domesticate and financing,] the Committee seeks to achieve bank reserve and money mar- ket conditions consistent with SOMEWHAT slower growth in monetary aggregates over the months immediately ahead than HAS occurred on the] of half first the in average [DEL: THUS FAR THIS year. Alternative B international of account taking while To implement this policy, [DEL: and forthcoming the and developments market financial domesticate Treasury financing,] the Committee seeks to achieve bank reserve and money market conditions consistent with slower growth in monetary aggregates over the months immediately ahead than HAS the] of half first the in occurred on average [DEL: THUS FAR THIS year. Alternative C international] To implement this policy, while taking account of [DEL: forthcoming the and and domestic financial market developments [DEL: Treasuryfinancing,] the Committee seeks to achieve bank reserve and money market conditions consistent with SIGNIFICANTLY slower growth in monetary aggregates over the months immediately ahead than HAS the] of half first the in occurred on average [DEL: THUS FAR THIS year. STRICTLY CONFIDENTIAL (FR) CHART 1 8/17/73 RESERVES AVAILABLE TO SUPPORT PRIVATE NONBANK DEPOSITS BILLIONS OF DOLLARS -34 A 1r I M I J 1973 -i-8 ii I I M I I i J 1972 i I S I I D I I J J I I I M J 1973 S D * Break in Series, Actual Level of RPD After Reauction in Reserve Requirements Effective November 9, 1972 * RPD Adjusted to Remove Discontinuity Introduced by increase in Reserve Requiremerns Effective July 19, 1973 I L J A CHART 2 STRICTLY CONFIDENTIAL (FR) 8/17/73 MONETARY AGGREGATES NARROW MONEY SUPPLY M1 BILLIONS OF DOLLARS -270 -250 I I I II I UI I I 1 1I I II J .I-230 3ROADER MONEY SUPPLY M2 ly - Aug 41/% growth i 972 1972 1973 1973 J 1973 A S CHART 3 STRICTLY CONFIDENTIAL (FR) 8/17/73 MONETARY AGGREGATES ADJUSTED CREDIT PROXY BILLIONS OF DOLLARS -470 -450 / -430 -410 -390 I I I I i 70 J i I1 I I I I I 1 TOTAL RESERVES 1972 1973 A M J J A 1973 Break in series; Actual Level of Total Reserves After Reduction in Reserve Requirements Effective November 9, 1972 S 0 CHART 4 MONEY MARKET CONDITIONS AND INTEREST RATES MARKET CONIDITIONS PER CENT -11 WFEKLY AVERAGES INTEREST RATES Short-term - PER CENT INTEREST RATES 11 WEEKLY AVERAGES WEEKLY 9 9 7 FHA MORTGAGES FNMA MONDAY AUCTI FEDERAL FUNDS RATE / 7 5 Aaa UTILITY NEW ISSUE EURO-OOLLARS 3 MONTH RATE GOVERNMENT - S3 I 3 1972 1973 10 YEAR AVERAGE! F\ \AA 1972 1973 1972 /--\ 1973 STRICTLY CONFIDENTIAL 1 TABLE AUGUST 17, BANK RESERVES (ACTUAL AND CURRENT PROJECTIONS) -- -- --- -- ------ m----------- ------------------------------ ----II AGGREGATE RESERVES I REQUIREn NESERVES -------------------------------------I------------------RESERVES AVAILABLE FOR I PRIVATE NONBANK OEPOSITS II SEASONALLY ADJUSTED -----------------------------------------------------If-------------------I - - ----- -------- ----------------------------- PERIOD ------------------- TOTAL (I1) I (2) ANNUAL RATES OF CHANGE --------------QUARTERLY: ------1973--1ST UTR. 2NO QTH. 29,860 30,095 30.511 31.299 (31.990) I 1 1 I 10.5 12.0 ( 29.893 29,931 30,174 31.117 (31701) 114.5) II MONTHLY: 1973--APR. MAY JUNE 9.6 9.4 16.6 I JULY I 17.5 AUG. 1 10.51) I AUR. I I ------- I I I 1 AND GOVIT AND DEP INTERANK m---------- (5) (6) (7) (a) 18.870 18,967 19.1?6 19.697 7777 7,842 7.898 79907 ( A.16) P.970 3,119 2,465 2,350 1.949 2.251 ( 19947) (20.001) I 13 JO3.104 3J,59 30,554 I 31.111 30.383 31,94 31,53 I I I I 1 32.225 I 1 ( 2.9 2.2 16.3) I I I 26.1 1.1 24.0 I i 26.2 44.1 1 ( -3.0) 5.3) ( ( -?0.51 1.239 3.44R ( 3.787) 90.2 85.4 7.7 9.9 ( 10,9) ( 94,7) - 9.5 6.2 10.1 10.9 10.0 135.3 8.6 46.2 14.5 1.4 60.2 77.4 -7.2) 1 16.51 ( 118.0) 3.6) ( 9.0) ( 101.5) I It I( 11.6) I 11.41 I1 I II I I 3 II 3P.4I5 31.612 I 18R961 7.47A 3. ?2 1.955 II 31.862 I I 29.627 j3026 b 0.479 1R.986 19,261 19.187 7.890 7.90 7,917 3.244 3,17? 3.302 1,754 2.029 1,870 I 30.965 I I 30.147 31,044 31.458 19,324 19,294 199420 2141 7.896 7.H92 7.926 7.891 3,'56 3.338 3,477 3,524 2,388 2*195 2.509 P 257 1 I I I I 31,654 319961 -7.1 17.3 12.3 4.4 0.6 1I I I 30.530 R 15 30.167 30,195 30.800 32.313 (32.237) II I I I 14.1) 6 4 11 18 25 NON I ( 3y.9V 32.42b 33.501 32578 33*803 33.790 32.126 .11647 32.806 32.294 329039 II It II II II 11 II II 29.755 309575 30.918 34,143 3?,558 ?0,224 7.929 19917 11 33.536 319666 I 30,80 319378 20.039 7,942 3.67A 1,882 31.669 11 33901 329200 1 19,970 8,007 3r,73 1,940 SI JULY CD'S TIME DEP -------- I 329326 329445 32,460 33.550 (33.937) 8. 5.8 1 ( JULY-AUG. I II 1 1 II II II III I I 15.5) 21 OTHER I II II I I I (4) 1 (3) I 20 PRIVATE OEMAND I m--- I I I I I I JUNE I I QTR, WEEKLY LEVELS-SMILLIONb ------------------ RFSERVES I MONTHLY LFVELS-$MILLIONSI ----------------- I 1973--APR. 1 MAY I JUNE 1 JULY I AUG. I 3Rb NONPORROWED I NUN SEAS ADJ II RESENVES I SEAS AO.I -------- --------------------------I ----- 1973 1 ------------------------------------------- 132.624 0-- I I I I I I I ---------------------------------------------------------------- bATA SHOWN IN PAREtlT4FiSES ARI CUHRENT PROJELTIONS. ANNUAL RATtS OF bROWTH HAVE AFFN ADJUSTE6 FOR CHANGES IN RFSFRVF REQUIREMENTS EFFECTIVE JULY 19. 1973. OF 11-1/2 TO 13-1/2 1/ AT THE FOMC MEETING JULY 17. 1973 THE COMMITTEE AGRFEO ON A HPh RANG PER CENT. NOTE: STRICTLY CONFIDENTIAL TAHLE 2 AUGUST 17, MONETARY AGGREGATES (ACTUAL AND CURRENT PROJECTIONS, SEASONALLY I I I PERIOD MONEY SUPPLY NARROW (M) I I RROAD (M2) (1) I (2) I ADJUSTED I I CREDIT PROXY (3) MONTHLY LEVELS-SBILLIONSI *****---------- ---- -m-1 1973--APR. MAY I JUNE JULY AUG. PERCENT -- ~-~----i-- ANNUAL GROWTH i----- 258.2 260.5 263.2 264.5 (264.7) 536.2 540.6 545.3 547.8 (55".0) I I 426.2 430.5 434.5 437.9 (444.7) I OUARTERLY --------- I 1973--IST TR. 2ND OTR. I I 10.3 5.7 9.5 15.0 12.2 3RD OTR. I ( 4.0) (7.7)I (13.6) I 7.5 10.7 12.4 5.9 ( 0.9) I 8.1 9.8 9 4 10.4 5. 92) 13.1 12.1 11.1 9.4 (18.6) ( 3.4) 1 1.7 I II U.S. I ADJUSTED) TIME AND SAVINGS DEPOSITS It GOVT, II DEPOSITS I I TOTAl iI It II II II II II II II II II II II II I1 (4) I (5) 5R 5.8 4.6 I I 5.1 1.4 I I 336.7 341.8 344.1 347.8 (354.0) ( 4 5) I OTHFH I THAN CD S 1 I I CD S (6) I (7) 278.0 280.1 282.0 2M3.3 (P87*3) I I 1 I 5 8,7 6 6 6 (6 1 NONDEPOSIT I SOURCES OF I FUNDS I S.1 5.4 5.a 6.5 ( 6.8) I ?3.1 16.0 I 9.5 II (16.2) I (11.2) 1 II II II If II II II II II 21.0 I .7 8.7 9.1 1 MONTHLY 1973--APR. MAY JUNE JULY AUG. I JULY-AUG. WEEKLY LEVELS-SBILLIONS JUNE I ( 7.4) (14.1) I 6 13 20 27 263.2 263.3 263.9 26268 I JULY 1 4 11 , 18 I 25 P 1 264.5 264.5 264.86 263.7 I I I I 544,8 545,2 545.8 544.8 433.5 433,4 435.4 435.1 547.4 546.8 548.0 547.2 438.3 436.7 437.0 437.7 1 I I I AUG. --rl--- 1 P I 8 P 15 PEI I ---------- 548.5 549.4 551.5 263.8 263.6 264.5 I ----------- I 439.4 441.6 444.7 I 1 If II II II II It II 11 11 II II 18.2 8.1 12.9 (21.4) 1 I 8.1 I 5.5 (16.9) (11.3) (17.3) I 4.7 4.5 6.1 5.6 342.9 343.8 343.5 344.7 I I I I 281.6 281.9 281.9 282.0 346.1 346.3 347.6 348.8 I I I I 283.0 282.4 283.2 283.4 350.2 351.7 353.6 I I 284.7 285.8 287.0 I 6 1.3 6 1*9 6 1.6 6 2.6 5.5 5.5 5.7 5.7 6 3.1 6 3.9 6 4,4 6 5.4 5.9 6.3 6.5 6.8 I 5.4 3.1 2.5 3.3 1 4.4 4.5 ---------------- NOTEI DATA SHOWN IN PARENTHESES ARE CURRENT PROJECTIONS. --- 1 I 1 6 5.5 6 5.9 6 6.A I I 6.A 6.5 I 7.2 1 -m---------------P - PRELIMINARY PE - PARTIALLY tSTIMATE6 1973 STRICTLY CONFIDENTIAL (FR) AUGUST 17, 1973 Table 3 RESERVE EFFECTS OF OPEN MARKET OPERATIONS AND OTHER RESERVE FACTORS (Millions of dollars, not seasonally adjusted) Period Bills & Accept. (1) Open Market Operations 1/ Coupon Agency RP's3/ Total Issues Issues Net (2) (3) (4) (5) Daily Average Reserve Effect 2/ Open Market A Member Other 4 Operations Bank Borrowing Factors (6) (7) (8) A in reserve categories req. resa against available res. 5/ U.S.G. and interb. (6)+(7)+(8)-(9) (9) (10) A Target available reserves 5/ (11) Honthl 1973 -- Jan. Feb. Mar. Apr. May June July Aug. Sept. 1,336 659 1,109 1,332 -506 649 1,073 -196 -207 -228 27 --18 -14 -19 -21 209 168 862 -193 542 -414 -942 -1,148 2,197 644 1,636 1,106 -1,470 1,085 2,416 1,116 146 1,689 1,323 1,437 -1,450 2,090 117 428 265 -137 66 1 263 376 -1,794 -1,723 -884 -1.392 1,084 -850 278 -109 156 -74 45 -470 318 1,331 -1,111 75 376 66 105 1,185 1973 -- June 6 13 20 27 -1,107 -198 293 590 --- --19 -229 1,955 -3,195 3,377 -1,262 848 -3,412 3,670 -444 -140 -2,156 968 951 -737 36 236 -82 869 1,499 -493 -945 -77 -295 67 -292 69 -326 638 216 July 4 11 18 25 464 380 -432 21 228 27 -- ---168 2,699 -5,499 3,629 -656 3,390 -5,093 3,193 -466 1,937 -793 250p -22p 554 -722 42p 358P -1,387 694 878p -20 4 p 618 -3 273p 2 - 82p 486 -818 897p 414p Aug. 788 -198 -515 --351* ---- 952 4,165 -59 1,760 -4,363 -223 674p -1,019p . 931p* 14p -86p -92p -4 6 7p 489p 1,378p -3 60 p 45p 62p 581p -661p 293p Weekly 1 s 15 22 29 i/ 2/ 2/ / I/ Represents change in System's portfolio from end-of-period to end-of-period; includes redemptions in regular bill auctions. Represents change in daily average level from preceding period. Includes matched sale-purchase transactions as well as RP's, Sum of changes in vault cash, currency in circulation, Treasury operations, F.R. float, gold and foreign accounts, and other FR accounts. Reserves to support private nonbank deposits. Target change for July and August reflects the target adopted at the July 17, 1973 FOMC meeting. Target change for previous months reflects the bluebook patterns that are consisteht with target ranges that were adopted during the month. *Includes special certificate (i.e., borrowing by Treasury from FR). 995 -1,140 -40 505 200 175 795 680 STRICTLY CONFIDENTIAL (FR) AUGUST 17, 1973 Table 4 SECURITY DEALER POSITIONS AND BANK POSITIONS Millions of Dollars U. S. Govt. Security Dealer Positions Coupon Issues Bills Period Other Security Dealer Positions__ber Municipals Corporate Bonds Bonds (3) (4) Excess** Reserves (5) Member Bank Reserves Positions s Bank Re Basic Reserve Deficit Borrowing at FRB** Total Seasonal 8 New York 38 Other (6) (7) (8) (9) (1) (2) High Low 4,291 1,916 1,585 -93 235 0 383 40 796 -133 1,223 12 -5,635 -1,638 -5,720 -1,910 1973 -- High Low 3,718 897 1,125 -96 175 0 244 45 631 -86 2,402 688 -5,243 -1,831 -7,267 -4,839 1972 -- July Aug. Sept. 2,262 2,643 4,099 97 692 170 142 114 53 166 176 174 147 255 162 202 438 514 -2,945 -3,913 -3,835 -2,603 -2,801 -4,024 Oct. Nov. Dec. 2,887 3,096 3,510 207 1,039 953 105 84 58 132 191 291 247 314 219 574 606 1,049 -3,637 -4,561 -4,977 -4,044 -3,622 -4,958 1973 -- Jan. Feb. Mar. 3,407 2,132 2,490 720 562 -50 27 77 24 177 123 125 289 207 177 1,161 1,594 1,825 -4,550 -4,187 -4,273 -5,469 -5,436 -5,847 Apr. May June 2,457 1,894 2,281 106 421 562 12 66 33 60 151 120 255 161 234 1,688 1,843 1,851 3 30 75 -3,293 -3,019 -3,507 -6,577 -5,872 -6,443 July 1,425 265 24 139 250p 1,953p 131p -2,488p -6 ,096 p 2,608 2,686 2,234 1,709 462 551 641 622 0 100 1 30 57 130 111 183 401 2 181 224 1,664 1,700 1,930 1,848 64 67 73 93 -2,934 -4,181 -3,875 -2,932 -5,772 -6,829 -6,581 -6,541 631 -20 4 05p 16 p 2,402 1,680 1,722p 2,080p 111 117 117p 12 8p -2,771 -2,860 -2,202 -2,374 -6,137 -7,267 -6,651 -5,176 4 76 p 2 2,094p 2 ,008p 1,916p 141p 158 p 148p -2,262 -2,4 11p -2,706p -4,725 -5,49 0p -6097p 1972 -- 1973 -- June 6 13 20 27 July 4 11 18 25 2,013 1,382 1,472 *1,362 391 373 328 * 234 0 77 10 10 134 129 144 148 Aug. I 8 15 22 29 *1,193 * 897 *2,060 * 58 *112 * -18 0 0 lop 86 53 60p 4p 259p Government Security dealer trading positions are on a commitment basis. Trading positions, which exclude Treasury bills financed by repurchase agreements maturing in 16 days or more, are indicators of dealer holdings available for sale over the near-term. Other security dealer positions are debt issues still in syndicate, excluding trading positions. The basic reserve deficit is excess reserves less borrowing at Federal Reserve less net Federal funds purchases. Weekly data are daily averages for statement weeks, except for corporate and municipal issues in syndicate which are Friday figures. **Beginning with January 1973, monthly averages for excess reserves and borrowings are weighted averages of statement week figures. Notes: *STRICTLY CONFIDENTIAL CONFIDENTIAL (FR) AUGUST 17, 1973 Table 5 SELECTED INTEREST RATES Per cent Short-term Treasury bills Period Federal funds -year 90-day 1972 -- High 1973 -- (7) Issue offered (8) d B (9) maturity) Yields (11) (10) 5.38 3.13 5.50 3.50 7.60 6.99 7.46 7.12 5.54 4.96 6.58 5.87 7.72 7.54 10.58 5.61 8.89 5.15 8.43 5.42 10.25 5.63 10.38 5.38 10.50 5.50 8.52 7.29 8.30 7.26 5.59 5.00 7.55 6.42 8.71 7.69 4.55 4.80 4.87 3.98 4.02 4.66 4.90 4.90 5.44 4.83 4.75 5.07 4.63 Aug. Sept. 4.65 4.88 4.75 4.78 5.00 7.38 7.37 7.40 7.37 7.34 7.42 5.41 5.30 5.36 6.11 6.21 6.55 7.63 7.63 7.65 Oct. Nov. Dec. 5.04 5.06 5.33 4.74 4.78 5.07 5.39 5.20 5.28 5.21 5.18 5.40 5.00 5.00 5.19 5.19 5.13 5.38 7.38 7.09 7.15 7.38 7.18 7.18 5.19 5.02 5.05 6.48 6.28 6.36 7.72 7.71 7.68 Jan. 5.94 6.58 7.09 5.41 5.60 6.09 5.58 5.93 6.53 5.76 6.17 6.76 5.63 6 16 6.78 5.75 6.28 6.75 7.38 7.40 7.49 7.35 7.41 7.51 5.05 5.13 5.29 6.46 6.64 6.71 7.69 7.72 7.78 6.26 6.36 7.19 6.51 6.63 7.05 7.13 7.26 8.00 7.04 7.44 7.98 6.75 7.41 8.13 7.48 7.51 7.64 7.48 7.50 7.64 5.15 5.15 5.18 6.67 6.85 6.90 7.89 7.96 June 7.12 7.84 8.49 July 10.40 8.01 7.97 9.26 9.09 9.19 5.40 7.13 8.46 13 20 27 8.43 8.17 8.55 8.59 7.03 7.09 7.22 7.24 6.95 6.93 6.98 7.14 7.68 7.88 8.03 8.18 7.75 7.88 8.00 8.30 7.88 8.00 8.13 8.50 July 4 11 18 25 10.21 9.52 10.22 10.58 7.69 7.87 7.85 8.14 7.62 7.65 7.75 8.24 8.56 8.88 9.10 9.58 8.63 9.00 9.13 9.63 8.75 9.00 9.25 9.75 8.28 8.48 8.89 8.43 8.41 8.41 9.85 10.08 10.25 9.88 10.13 10.38 10.00 10.25 10.50 High July Apr. June 6 Aug. ?rtef: (6) Auction 5.50 3.75 tay -- - (5) FNMA (10-yr. Constant 5.52 3.60 Feb. Mar. 1973 -- Paper (4) Government U.S. Municpaer 5.13 3.03 Low 1972 -- Recently 5.38 3.18 Low 1973 -- Long-term Aaa Utility CD's New issue-NYC ommercal (J) (2) _ 90-119 day 1 8 15 22 29 10.57 10.39 10.39 I , _ 1 r _ I 7.63 7.59 7.66 7.73 7.59 7.60 7.69 7.72 5.13 5.13 5.19 5.25 6.92 6.86 6.89 6.93 7.92 7.92 7.80 7.85 7.94 8.12 5.34 5.40 5.37 5.48 7.02 7.05 7.09 7.24 8.28 5.59 5.58 5.47 7.48 8.03 8.31 8.52 8.30p II 8 30 8.16p I ~L _ 8.07 8.04 8 09 8.38 8.54 8.71 7.54 7.46p . L---- Weekly data for columns 1 to 4 are statement week averages of daily data. Columns 5 and 6 are one-day Wednesday quotes. For columns 7, 8 and 10 the weekly date is the mid-point of the calendar week over which data are averaged. Column 9 is a one-day quote for the Thursday following the end of the statement week. Column 11 gives FNMA auction data for the Monday preceding the end of the statement week. The FNMA auction yield is the yield in the bi-weekly auction for short-term forward commitments for Government underwritten mortgages. Appendix Table I CONFIDENTIAL (FR) RESEVES AND MONETARY VARIABLES August 17, 1973 --.- i; ---- II ' Tntal I ernte - I Available to P Support Pvt. fleenite nhrroed I ( I---- 0 CI I ------ monav Stock Measure" I C. IFI 1 I }-an - 2 5 i 3I ~---'-P-_l----i-~-~T~ flant redlt Measures Ad td Total Credit I Loans and Proxy Investments 6-- i'~'-l-l-L*--- --- ner Til m TotlI Other than Tie I CD' It I -:;~^9)1i n^ -t-an-i '7-1- ~~--~ ~-- Thrift nstituon Deposits I I CD's Nondapott Fuods (A \ -- Idt.atod U .S. Gov't. Demand 'T'n " (Dollar Change in Billions) (Per Cent Annual Rates of Groth) Anually' 1968 1969 1970 1971 1972 +5.3 -2.8 49.6 48.1 47.1 48 +9.6 46.3 +10.7 +3.4 +10.1 43.0 +10.4 +11.4 +2.6 +13.0 -8.4 -7.6 40.4 +8.3 +2.9 +8.0 +13.5 +11.0 +3.9 48 1 +11.3 416.6 +11.5 -4 8 +17 9 +18.2 415.5 +11.2 +1.6 413.0 +9.5 +0.4 48.2 +9.4 411.6 +16.7 +13.3 +6.4 +3.5 +7.7 +17.5 +16.8 +14.9 47.4 416.4 +9.8 +10.1 +8.4 +11.5 +10.6 +21 6 +13.4 +20.0 +12.1 +19.6 +14.0 -7.1 -0.4 -1.4 +1.1 +7.7 48.5 +10.8 +10,3 413,0 412.1 +11 4 +11 1 +12.8 +15.5 +15.4 +14.5 +13.7 +12.1 +17.3 415.0 -0.3 +0.6 +0.. 46.0 +7.7 +9.1 +13.8 +14.3 +20.0 +9.2 +11.6 +1.2 -1.1 +4.1 41.9 +6.0 48.7 +8.9 410 5 +6.7 +9.8 +16.6 +8.0 +15.9 +14.2 +13.3 -0.4 +1.1 +10 6 13.6 +9.9 +10., 49.2 46.1 +16.1 +10.8 +12.3 +11.6 +19.7 +14.3 +16.2 +13.2 -0.3 48.6 +12.7 48 5 +10.3 +10.2 0. , +0.5 -1.1 +1.4 +1.7 4-10.1 +9.5 +10.4 +15.1 +12.6 +7.9 48.3 +9.2 412.5 +9.3 4+8.7 410.1 +7.9 +12.2 1 -1.7 48.6 47.2 49.7 +7.8 +3.6 +6.0 46.6 +8 3 +9.3 42.6 +8.6 +11.4 +10.8 411.1 +2.9 *12.4 +14.4 *7.7 +10.1 -0.6 +0.5 +1.1 -0.3 +0.4 seat-Annually. Half Ind Wall let 1971 1971 slt 1alf 1972 2nd alif 1972 +12.1 +2.0 +4.9 lst Ralf 1973 anurtrlv 43 3rd Qtr. 1971 4th Otr. 1971 l1t Qtr, 1972 2td Qtr. 1972 3rd Otr. 1972 4th Otr. 1972 +10 7 Int Otr. 1973 ?n. Otr. 1017 -7.1 417.3 +10.5 +26,7 -5.7 +11.0 +11.0 1972' 1973 -0,8 -4.8 Tan Feb. Mt. Mar. Apr. May June July Aug. Sept. Oct. omv. 7 +9.6 +8.0 +2 9 +0.7 -6 1 +15 5 +9.8 -10.9 +6.5 +13.6 +6.8 +3.9 +9.0 46.9 49.7 +12.9 43.2 +20.8 +7.7 431.3 -41.3 -10.5 +26.1 +1,1 424,0 4664.1 +22.8 -4.7 +13.4 49.6 +9 +16.6 +17.6 421 Jan. Feb. War. Apr. May June July p - -'-L-- fLt.Iteorve requlromentx October 1. 1970 p - Treltminary. 2 +6.0 +8.2 +1 0 +14.7 +11.5 48 0 +4.0 +6.4 +12.7 44.4 47.2 +7.5 +10.7 +12.4 45.9 49 8 +9.7 1T1.1 +11.0 +11.5 +9.8 +12.1 +15.7 +9.5 +13.9 +16.4 +15.6 +14.8 414.0 +14.6 49.6 +15 0 +12.2 +1.64 +9.8 +23.1 416.0 +13.2 +16.8 +14.2 +9.2 +7.2 +16.2 +14.2 +12.4 419.9 +5.4 420.0 +2.3 49.0 417.9 +14.4 +10.7 +21.2 +16.7 +15.4 +20.3 +18.7 +6.6 +19.0 +3.8 +10. 417.7 +16.2 411.6 412.8 418.2 412.9 413.6 415.9 +12.0 +14.9 410.7 +12.4 411.5 +4.6 410.7 412.2 415.6 +11.1 +6.6 +10.0 49.6 49.5 +11.9 +10.5 +13.6 .8.3 +16.4 +19.7 +13.1 +12.1 +11.1 +9.4 410.1 +13.9 +11.6 +11.2 +12 0 + 9.8 +12.4 +9.8 +6.4 913.33 +9.0 +5.9 44.7 +6.9 +8.1 48.4. +9.8 +9.1 +10.4 +10.4 +5.5 +5.7 411.5 414.2 417.1 +15.7 +21.6 430.9 +21.0 418.2 +8.1 412.9 +9.5 +8.7 +19.2 +15.4 +13.2 +7.8 413.0 +11.4 +12.3 414.0 +10.2 +12.9 +10.4 +11.2 412.9 +5.7 +9.6 48.7 +9.1 +8,1 +5.5 +0.4 +0.3 +13.6 +9.1 40.5 +0.7 -2.4 +23.3 +16.6 418.2 +13.4 +21.6 +16.9 416,7 +16.9 -0,1 0.3 +0.1 0.2 +0.2 +0.2 +16.3 +14.5 +12.3 412.5 419.5 +9.1 +11.7 +6.4 +9.3 +12.1 -0.5 + .1 +0.3 +B.1 +0.1 -0.1 +0.2 +0.2 +0.4 +0,3 +0.2 +0,9 -I ' on Iurodollar nhrrmvings are Includd beginning October 16. 40.7 -1.3 I +I +1.1 +0.7 -1.3 -0.7 +0.6 +1.2 +0.6 -0.4 ,0.6 4+.1 40.3 -1.7 -1.2 +0.S -1.7 -. _.r1969, and requirements on bani-Telated conalirctal paper are included beginning Appendix Table II RESERVES AND MONETARY VARIABLES of dollars) (Seasonally adjusted, billions ' c ---- RESERVES MONEYSTOCKMEASURES Avellbla to Period Total borrod Depait l (4) Annully: ODe. 1969 Dec. 1970 Dee. 1971 ~ BANKCREDIT MAlSURES Adjusted lrota Pvt. (5) August 17, 1973 p (6) 3 (7) Pco Time TotalI l v ata --- ' OTHER Tia (10) Ca'n (11) 194.6 229.2 270.9 Thrift Dea tta D's (12) (13) 183.5 203.9 237,9 201.7 216.1 253.8 10.9 25.3 33.0 Non- U.S. epe, (14) and (15) 27,959 29.121 31.209 26,699 28,727 31,060 25,339 26,975 28,907 20s8. 221.3 236.0 162.7 172.2 183.4 392.3 425.2 473.8 594.0 641.3 727.7 307.7 332.9 366.3 606.0 638.9 688.6 Mar. 31,776 31,639 32,021 31,751 31,601 31,891 29,172 29,329 29,656 236.2 239.1 261.4 183.3 185.8 187.7 677.9 483.9 488.9 735.7 766.0 754.,8 367.1 369.3 376,3 696.6 699.5 507.8 261.7 244.8 247.5 257.8 262.1 265.9 33.2 33.7 33.8 6.0 3.6 3.7 6.3 4.6 5.7 Apr. Nay June 37,612 32.852 33,027 32,667 32,720 32,938 29,824 29,920 30,146 243.0 263.8 265.1 189.1 189.6 190.7 692.1 695.5 699.3 761.5 767.9 775.0 378.1 383.0 385.1 510.1 518.6 519.8 269.1 251.8 256.2 269.4 272.4 275.7 35.2 36.8 37.5 3.5 3.7 3.8 6.8 7.5 6.2 July AuB. 33.171 33,381 33.327 33,018 33,08 267.7 268.6 250.1 193.1 193.8 196.8 506.5 508.6 512.1 784.0 791.6 799.0 388.3 391.6 396.5 523.7 521.5 537.9 256.8 259.8 262.0 279.6 283.2 286.9 38.3 39.1 39.8 3.9 4.2 32.870 30,317 30,562 30.890 5.2 4.5 5.1 Oct. 1car. 33,832 31,883 31.309 33,295 31,297 30,063 30,973 29,496 28,862 251.6 252.7 255.5 195.9 196.5 198.7 516.6 519.8 525.1 807.0 813.6 822.0 398.4 601.9 606.4 542.7 552.3 560.0 264.8 267.1 269.6 290.6 293.8 296.9 60.0 41.2 63.2 6.3 6.3 &.4 6.3 6.9 6.5 1973--JeS. Teb. War. 32.242 31,669 31,999 30,868 29,787 29,526 29,411 29,296 29,622 255.4 256.7 256.6 198.6 199.3 198.7 527.9 530.5 532.6 828.7 834.9 839.7 609.2 616.8 421.6 567.2 576.8 585.8 272.5 273.8 276.0 300.8 306.6 307.0 66.4 48.8 56.9 6.5 6.5 4.9 7.1 7.2 7.5 Apr. 32,326 32,445 32,460 33,550 30,167 30,195 30,800 32,313 29,860 30,095 30,511 31,299 258.2 260.5 263.2 266.5 199.5 201.6 203.9 205.1 536.2 540.6 545.3 567.8 845.6 852.0 859.4 863.5 426.2 630.5 434.5 437.9 588.9 598.2 600.1 605.5 278.0 280.1 282.0 283.3 309.6 311.6 314.1 315.6 58.7 61.7 62.0 64.5 5.1 5.6 5.6 6.5 5.8 4.6 5.1 3.4 30,579 29,319 29,219 30,863 30,128 29,366 29,831 30,045 257.5 257.5 258.9 257.0 199.3 198.9 200.2 198.2 534.1 534.1 537.9 535.6 426.0 424.1 625.8 426.7 iiiiiii 189 25 32,628 31,838 32,519 32,402 2 9 16 23 30 32,387 32,116 32,940 32.384 32,353 30,627 29,620 29,490 29,971 30.570 30,120 29,620 30,360 30,037 30,293 259.4 259.5 261.2 260.6 260.8 200.8 200.2 202.3 201.6 201.8 538.6 538.3 541.2 541.2 541.8 6 13 20 27 32.685 31.862 32,624 32,425 31.012 29,753 30,575 30,918 30,530 30,108 30,596 30,556 263.2 263. 263.9 262.1 203.9 203.0 204.5 203.5 203,5 566.8 545.2 545.8 544.8 A 32,126 31,667 32,806 32,294 31,113 30,383 31,291 31,533 26,5 263.7 205.0 205.0 203.6 206.3 547.4 566.8 568. 0 567.2 32.558 31.666 32,225 31,654 263.8 263.6 206.5 203.7 548.5 549.6 5.3 6.5 6.1 Monthly: 1972--Jan. sept. Dec. Way June Jhly p & 1973--Apr. May June July Aul. 11 18 25 p 33,501 32,570 33,803 33,790 1 8 p p 34.143 33,536 I - ;, ::::::::::::::: ;::::::::::::::: 429.5 428,4 630.2 430.8 431.0 4 33 .3 335.6 337.1 337,4 276.6 276.6 279.0 278.6 57,7 59,0 58.1 58.8 4.9 6,9 5.2 5.6 7.7 5.4 4.6 361.7 342.9 iiiiiiiiiiiii 343.6 279.0 278.8 279.9 280,7 281.0 59.3 61.1 61.8 62.3 62.6 5,2 5.0 5.4 5.7 5.7 6.8 5.4 4.1 3.8 3.9 281.6 281.9 281.9 282.0 283.0 61.3 61.9 61.6 62.6 5.5 5.5 5.7 5.7 4.7 4.5 6.1 5.6 i 362.9 633.5 433.6 435,4 635.1 ::::;:::: : i; ::::::::::::::: ; 438.3 436.7 437.0 JI:::llllHI ............ !! 637.7 .5 34: 363.5 344.7 282.4 283.2 283.4 63.1 63.9 66.* 65.5 5.9 6.3 6.5 6.8 5.4 1.1 2.3 3.3 iiiiiiiil!350.2 284.7 285.8 65.9 63.9 6.8 6.5 3.5 4.4 ............ i~ -- 1:"""""""" ----- 351.7 U 4.O !!.!!.. 346.3 347.6 iiiiiiiiiii iiiiii 346.2 i.!! 639.4 41.6 4.1 ............... ; p - Preliminary NOTr. IResrve reqniremento on Euro-dollar borrowings are included beginning October 16, 1969, and requirements on bank-related commnnercial paper are eluded beginning October 1, 1970. Adjusted credit proxy include mainly total member bank deposite subject to reserve requirements, bank-related comnsrcial paper, and Euro-dollar Fonthly data are daily averages except for non-bank coaeretal paper figurea which borrowings of F.S. hanks. eekly data ere daily averages for statement weeks. are for last day of month. Weekly date are not Available for M , total lBans and invetmnts and thrift institution deposlts. APPENDIX TABLE III Growth Rate in Money Supply (Per cent change at an annual rate) H2 M1 M 1971 1972 M Q M Q I 8.9 6.3 17.1 13.7 18.0 14.8 II 11.1 11.2 12.1 14.8 44.1 16.3 III 4.1 7.1 6.0 8.2 8.9 10.6 IV 1.9 2.2 8.7 7.4 10.4 9.6 I 9.2 5.3 12.7 11.1 14.9 13.2 6.1 8.4 8.5 10.0 10.7 12.1 III 8.2 8.0 10. 3 10.3 12.3 12.2 IV 8.6 7.1 10.2 9.5 11.4 11.4 1.7 4.7 5.7 8.8 10.0 6.9 9.5 9.2 II 1973 Q "3 I II 10.3 M = Annual rates of growth calculated from average levels in the final months of the quarters. Q = Annual rates calculated from average levels in all three months of the quarters. 8.5 

Federal Reserve (1973, August 20). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19730821

@misc{wtfs_bluebook_19730821,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1973},
  month = {Aug},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19730821},
  note = {Retrieved via When the Fed Speaks corpus}
}