Bluebook

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. 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 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. May 17, Strictly Confidential (FR) 1985 Class I FOMC MONETARY POLICY ALTERNATIVES Prepared for the Federal Open Market Committee By the staff Board of Governors of the Federal Reserve System STRICTLY CONFIDENTIAL (FR) May 17, 1985 CLASS I - FOMC MONETARY POLICY ALTERNATIVES Recent Developments (1) Growth of M1 in April was around 6 percent, but data for early May suggest somewhat stronger growth this month, bringing M1 a little above the 6 percent annual rate path adopted by the Committee at its last meeting. Flows associated with refunds and final payments around the April tax date appear to have had little net impact on recent M1 growth. Refunds probably added to growth in April and perhaps in early May, as the Treasury greatly accelerated processing, but larger-thanexpected tax payments reflected in a corresponding rise in the Treasury's cash balance may have had an offsetting effect. (2) In contrast to M1, growth in the broad aggregates has been running well below the FOMC's March-to-June paths of 7 and 8 percent for M2 and M3. In April, these aggregates showed little net change, and data for early May suggest only a modest rebound. Weakness in the broad aggregates stemmed in large part from managed liabilities. The substantial rise in the Treasury's balances at banks along with a sizable liquidation of inventories of Treasury securities at large banks in April reduced the need to raise funds in the market. In addition, it is possible that larger-than-usual nonwithheld tax payments out of MMDAs and MMMFs may have held down growth in the broad aggregates to a degree. Finally, strong inflows to IRA and Keogh accounts--excluded from monetary measures--may also have retarded growth of M2 and M3 in April by a small amount. (3) Domestic nonfinancial debt is estimated to have increased at an 11-3/4 percent annual rate in April, the same as its March pace, -2- KEY MONETARY AGGREGATES (Seasonally adjusted annual rates of growth) QIV to QI QIV to Apr. 6.1 10.6 9.3 3.8 -0.8 12.0 8.3 5.6 0.7 10.7 7.9 Domestic nonfinancial debt 11.8 11.8 13.3 12.9 Bank credit 11.4 4.4 9.9 9.3 Nonborrowed reserves 2 4.5 13.2 25.0 19.6 Total reserves 5.9 10.6 21.2 17.2 Monetary base 5.4 4.9 8.7 534 455 - 766 746 Mar. Apr. M1 5.7 M2 M3 Money and Credit Aggregates Reserve Measures1 Memo: 7.8 (Millions of dollars) Adjustment and seasonal borrowing Excess reserves NOTE: Monthly reserve measures, including excess reserves and borrowing, are calculated by prorating averages for two-week reserve maintenance periods that overlap months. 1. Growth rates of reserve measures are adjusted to remove the effects of discontinuities resulting from phased changes in reserve ratios under the Monetary Control Act. 2. Includes "other extended credit" from the Federal Reserve. as lower nonfederal borrowing offset a pick-up in expansion. Still, growth in federal government debt this aggregate from the fourth quarter of 1984 remains somewhat above the 12 percent upper limit of its range. Business borrowing has moderated a little monitoring so far this year, but with merger-related debt issuance running close to the average pace of 1984, it remains sizable. Household demands for funds, especially for consumer installment credit, also have remained quite strong. (4) The nonborrowed reserve path for the intermeeting period initially was constructed assuming $400 million of adjustment plus seasonal borrowing at the discount window. In late April, however, the borrowing assumption was raised to $450 million as special situation borrowing by a number of thrift institutions increased. maintenance periods (ending May 8) Over the three complete reserve following the last Committee meeting, adjustment plus seasonal borrowing averaged about $475 million, with excess reserves averaging somewhat higher than expected. tion borrowing by thrifts, Excluding special situa- the borrowing average was around $380 million. Seasonal borrowing has also been somewhat stronger than might have been expected, given the prevailing configuration of the discount and money market rates, perhaps reflecting the liberalized provisions of the regular seasonal program as well as liquidity pressures at small banks. in Thus far the current maintenance period adjustment plus seasonal borrowing has averaged $830 million, boosted by a substantial further increase in special situation borrowing by thrifts as well as borrowing by large banks faced with unexpected funds needs late in the day. On May 16, special thrift borrowing totaled $496 million (of which $22 million are now being reported as extended credit). -4(5) The federal funds rate has declined about 1/4 percentage point since the previous FOMC meeting, with the rate averaging a shade over 8-1/8 percent during the past two weeks. Other market interest rates declined by about 3/4 to 1-1/4 percentage points, prior to announcement of the reduction in the discount rate from 8 to 7-1/2 percent late Friday.1/ The sizable drop in market rates reflected in part abatement of previously held expectations that Federal Reserve policy might take a firmer turn and, as the intermeeting period progressed, a perception that some slight easing might be under way or at least in prospect as the federal funds rate declined somewhat. Markets were also affected by incoming evidence indicating that the economy was not strengthening significantly from the weak first quarter, by slowing in growth of the monetary aggregates, the agreement in the Senate on reducing federal budget deficits. exchange value of the dollar depreciated, the last FOMC meeting in on balance, and by The by 5 percent since volatile markets; The failures of two small government securities dealers and the problems of privately-insured Maryland thrifts have had little during the intermeeting period appear to systemic impact on domestic credit or foreign exchange markets; although no general "flight to quality" appears to have emerged, to be some added caution in 1/ there seems attitudes toward RPs of smaller dealers. Following the announcement and on thin, late hour trading, Treasury rates note and bond prices rose by about 3/4 to a full point and bill dropped around 5 to 10 basis points. Prospective developments (6) The table below gives three alternative specifications for growth in the monetary aggregates over the March-to-June period, along with the growth rates for this period chosen by the Committee at its March meeting and the growth implied by each alternative for the two-month Aprilto-June period. It also shows ranges for the federal funds rate associated with each alternative. (More detailed data can be found on the charts and table on the following pages). March Alt. A Alt. B Alt. C FOMC Paths Growth from March to June M1 7 6-1/2 6 6 M2 4-1/2 4 3-1/2 7 M3 5-1/2 5-1/4 5 8 M1 7-1/2 6-3/4 6 6 M2 7 6-1/2 5-3/4 11 1/ M3 8 7-1/2 7 11-1/2 1 Implied growth from April to June / Associated federal funds rate range (7) 5 to 9 5-1/2 to 9-1/2 6 to 10 6 to 10 The specifications of alternative B involve slightly faster M1 growth over the three-month March-to-June period than adopted at the last Cmmittee meeting, but much slower growth in the broader 1/ Average growth in May and June, given actual growth in April, needed to hit March FOMC paths. Alternative Levels and Growth Rates for Key Monetary Aggregates M1 M2 M3 Alt. A -- Alt. B -- Alt. C --- Alt. A - Alt. B - Alt. C --- Alt. A ---- Alt. B - Alt. C Monthly Levels 1985--January February March 562.7 569.4 572.1 562.7 569.4 572.1 562.7 569.4 572.1 2398.9 2420.9 2428.6 2398.9 2420.9 2428.6 2398.9 2420.9 2428.6 3020.6 3041.6 3055.7 3020.6 3041.6 3055.7 3020.6 3041.6 3055.7 575.0 578.6 582.1 575.0 578.5 581.4 575.0 578.4 580.7 2427.0 2437.2 2455.9 2427.0 2437.0 2452.9 2427.0 2436.8 2449.9 3057.5 3071.5 3097.7 3057.5 3071.5 3095.4 3057.5 3071.5 3093.1 9.0 14.3 5.7 9.0 14.3 5.7 9.0 14.3 5.7 13.7 11.0 3.8 13.7 11.0 3.8 13.7 11.0 3.8 10.2 8.3 5.6 10.2 8.3 5.6 10.2 8.3 5.6 6.1 7.5 7.3 6.1 7.3 6.0 6.1 7.1 4.8 -0.8 5.0 9.2 -0.8 4.9 7.8 -0.8 4.8 6.5 0.7 5.5 10.2 0.7 5.5 9.3 0.7 5.5 8.4 10.6 7.4 10.6 7.2 10.6 7.0 12.0 4.0 12.0 3.8 12.0 3.6 10.7 4.8 10.7 4.7 10.7 4.6 1985 March to June 1985 April to June 7.0 7.4 6.5 6.7 6.0 5.9 4.5 7.1 4.0 6.4 3.5 5.7 5.5 7.9 5.2 7.4 4.9 7.0 04 84 to Apr. 85 Q4 84 to June 85 9.3 8.9 9.3 8.6 9.3 8.4 8.3 8.0 8.3 7.8 8.3 7.6 7.9 8.0 7.9 7.8 7.9 7.7 April May June Growth Rates Monthly 1985--January February March April May June Growth Rates 1985--QI Q2 Chart 1 ACTUAL AND TARGETED M1 Bi I ions of do l ars I 600 -- ACTUAL LEVEL SSHORT RUN ALTERNATIVES - 590 A* c : * .. ." -1 580 - 570 -- 560 -- 550 I I 1 1 I I , , I 0 N 1984 D J F M 1 1 1 1 1 1 A M J 1985 J I A 540 I S , , , , 0 N D Chart 2 ACTUAL AND TARGETED M2 Bi lions of do Illara 1 2600 - H 2550 ACTUAL LEVEL SSHORT RUN ALTERNATIVES H 2500 - 2450 H 2400 -1 2350 H 2300 I 0 N 1984 D J I F I M I SI A I M I J J 1985 I A S I I I I 0 N 2250 D Chart 3 ACTUAL AND TARGETED M3 Bil ions of do I lars 1 3300 -- ACTUAL LEVEL SSHORT RUN ALTERNATIVES -- 3200 -- 3100 3000 -- 2900 I I 0 N 1984 D I J I F I M A I M I J J 1985 I I A I S 2800 I 0 N D -7aggregates, given their weak performance in April. This behavior of the aggregates is expected to be consistent with seasonal plus adjustment borrowing at the discount window of $300 to $350 million, assuming that borrowing by privately-insured thrift institutions experiencing persistent liquidity difficulties is in effect extended credit. Total reserves might increase at a 6 percent annual rate over May and June under alternative B, with nonborrowed reserves (including extended credit) increasing at 8 percent rate. (8) The federal funds rate will probably trade around 7-3/4 percent, given the current 7-1/2 percent discount rate. Although the discount rate cut was partly anticipated, market interest rates generally are likely to settle somewhat below recent levels, with the 3-month Treasury bill probably trading mostly around 7-1/4 percent. The exchange rate may also decline somewhat, although some foreign authorities might take advantage of the opportunity to allow their domestic interest rates to decrease further. (9) The decline in interest rates over the past several weeks will be tending to boost money demand in May and June, and M1 under this alternative is expected to increase at a 6-1/2 percent rate over the March-to-June period, despite some weakening in projected nominal GNP growth for the second quarter. On a quarterly-average basis, M1 would increase at a 7-1/4 percent rate in the second quarter, which implies a second consecutive quarterly decline in velocity, although at a somewhat slower rate than in the first quarter; such a decline is roughly consistent with model results. By June, M1 under alternative B would be about $1-3/4 billion (or 0.3 percent) above the upper parallel line of the band drawn from the fourth quarter end points of the 4 to 7 percent range -8for 1985, with growth from QIV '84 to June at around an 8-1/2 percent annual rate. (10) Growth of M2 and M3 under alternative B would be expected to pick up in May and June to a 6-1/2 to 7-1/2 percent annual rate on average. Much of the pick-up would be expected in RPs and the other managed liability components of the broader aggregates, partly as Treasury deposits at banks drop after late May. Core deposits in the nontransactions M2 are likely to expand more rapidly than the 6 percent pace of April, and net inflows to MMMFs are likely to pick up, given the usual lagged adjustments in changes in returns on these instruments relative to declines in market rates. (11) The debt of nonfinancial sectors is expected to increase in the second quarter at a little under its pace of the first quarter, and for the first half of 1985 would be right around the 12 percent upper limit of the FOMC's monitoring range. Growth in U.S. government debt, seasonally adjusted, will be a little larger in the second quarter than in the first, although most of the Treasury's cash requirements for the current quarter have already been met following the mid-quarter refunding. Credit raised by businesses is projected to increase slightly in the second quarter. Underlying needs for funds are being held down by relatively restrained inventory accumulation, but borrowing totals continue to be swelled by financing for mergers and stock repurchases; over the first half of the year unusual issuance of debt for such purposes is estimated to account for around 1-1/4 percentage points of total debt expansion of domestic nonfinancial sectors. Mortgage borrowing is expected to continue at about the first-quarter pace, but consumer credit growth likely will moderate somewhat as spending on consumer durables increases more slowly. -9(12) As compared with alternative B, alternative C involves tighter reserve conditions thought more likely to be consistent with constraining M1 growth to the 6 percent path for March to June chosen by the Comittee at its last meeting. Expansion at this rate would leave M1 quite close to, though still a bit above, the upper limit of its band. This alternative, which contemplates M1 growth of a little under 5 percent in June, would be expected to entail adjustment plus seasonal borrowing, excluding that by thrifts in special situations, of around $450-$500 million. The pick-up in growth of the broader aggregates would be somewhat less rapid under this alternative, with M2 and M3 expanding in a 5-3/4 to 7 percent range over May and June. (13) The federal funds rate would probably remain around 8 to 8-1/4 percent under this alternative. As such a rate persisted, counter to market expectations given the cut in the discount rate, other interest rates would rise appreciably from recent levels, retracing a good part of the decreases since the last FOMC meeting. The dollar would probably rise on foreign exchange markets. (14) Alternative A contemplates lesser restraint on reserve conditions than B. Borrowing would be expected to drop to around minimum levels--perhaps around $200 to $250 million--and the federal funds rate to fall to somewhat under the current 7-1/2 percent discount rate. Growth of M1 from March to June would be expected to be around 7 percent, bringing this aggregate to a level about 1/2 percent above the upper parallel band. The further drop of interest rates expected under this alternative could lead to substantial inflows into deposits and money funds, and growth in M2 and M3 over May and June would probably pick up into a 7 to 8 percent range. Interest rates and exchange rates would decline further, with the three-month bill rate probably falling to near 7 percent. -10- Directive language (15) alternatives, Draft language for the operational paragraph, with is shown below with suggested deletions from the current directive indicated in strike-through form and proposed additions in caps. As in the past, it is assumed that the "degree of pressure on reserve positions" is indexed primarily by the level of borrowing at the discount window, excluding borrowing classified as extended credit. In the proposed directive it is also assumed that the "degree of pressure on reserve positions" excludes any special situation borrowing at thrifts that has not yet been classified as extended credit. On that basis, alternative B is suggested as consistent with maintaining the existing degree of pressure on reserve positions, although the associated funds rate is likely to be lower than during the past several weeks owing to the cut in the discount rate. Bracketed alternative language with respect to the aggregates is suggested for consideration in view of the substantial shortfall in growth of the broader aggregates from expectations at the time of the March meeting. OPERATIONAL PARAGRAPH In the implementation of policy for the immediate future, taking account of the progress against inflation, uncertainties in the business outlook, and the exchange value of the dollar, the Committee seeks to REDUCE SOMEWHAT (Alt. A)/maintain (Alt. B)/INCREASE SOMEWHAT (Alt. C)/the existing degree of pressure on reserve positions. This action is expected to be consistent with growth in M1, M2, and M3 at ____,____, AND ____ percent, 6, 7,and 8] annual rates of around [DEL: -11respectively, during the period from March to June. [Alternative: This action is expected to be consistent with growth in M1, [DEL: M2 and M3] at AN annual [rates] RATE of around [DEL: 6, 7, and 8] ____percent, [DEL: respectively,] during the period from March to June. M2 AND M3, AFTER SHOWING LITTLE CHANGE IN APRIL, ARE EXPECTED TO GROW AT ANNUAL RATES OF ____ AND ____ PERCENT, RESPECTIVELY, OVER MAY AND JUNE ON AVERAGE.] Somewhat lesser reserve restraint might (WOULD) be acceptable in the event of substantially slower growth of the monetary aggregates while somewhat greater restraint might (WOULD) be acceptable in the event of substantially higher growth. In either case such a change would be considered in the context of appraisals of the strength of the business expansion, progress against inflation, and conditions in domestic credit and foreign exchange markets. The Chairman may call for Committee consulta- tion if it appears to the Manager for Domestic Operations that pursuit of the monetary objectives and related reserve paths during the period before the next meeting is likely to be associated with a federal funds rate persistently outside a range of [DEL: 6-to-10] ____TO ____ percent. Selected Interest Rates Percent May I . 20, 1985 aLono- erm 1984--HLgh Low 11.77 7.95 10.65 7.71 10.76 8.01 11.09 6.39 11.71 8.24 11.35 8.04 10.72 8.38 13.00 11.00 13.44 10.39 13.84 11.30 13.81 11.36 15.30 12.70 11.44 9.86 14.68 13.14 14.00 12.50 12.31 10.81 1985--High Low 8.75 7.69 8.65 7.64 9.03 7.81 9.21 8.00 9.11 8.08 8.83 7.89 8.31 7.77 10.75 10.50 11.19 9.89 11.95 11.01 11.89 11.18 13.23 12.24 10.31 9.34 13.29 12.90 13.00 12.50 11.14 10.59 1984--Apr. May Juine 10.29 10.32 11.06 9.69 9.83 9.87 9.84 10.31 10.51 9.95 10.57 10.93 10.41 11.11 11.34 10.17 10.38 10.82 9.29 9.52 9.92 11.93 12.39 12.60 11.98 12.75 13.18 12.63 13.41 13.56 12.65 13.43 13.44 13.96 14.79 15.00 10.26 10.88 11.07 13.65 13.94 14.42 13.00 13.94 14.00 11.16 11.35 11.67 July Aug. Sept. 11.23 11.64 11.30 10.12 10.47 10.37 10.52 10.61 11.56 10.47 10.89 10.71 10.51 11.06 11.19 11.11 10.30 10.58 10.62 13.00 13.00 12.97 13.08 12.50 12.34 13.36 12.72 12.52 13.21 12.54 12.29 14.93 14.12 13.86 10.84 10.40 10.54 14.67 14.47 14.35 14.00 13.70 13.50 12.20 12.14 12.00 Oct. 9.99 9.43 8.38 9.74 8.61 8.06 9.87 8.81 8.28 9.93 9.01 8.60 10.38 9.18 8.60 10.05 8.39 10.16 9.34 8.55 12.58 11.77 11.06 11.85 10.90 10.56 12.16 11.57 11.50 11.98 11.56 11.52 13.52 12.98 12.88 10.77 10.69 10.40 14.13 13.64 13.18 13.38 12.75 12.50 11.96 11.54 11.01 1985--Jan. Feb. Nar. 8.35 8.50 8.58 7.76 8.27 8.52 8.00 8.39 8.90 8.33 8.56 9.06 8.14 8.69 9.02 7.99 8.46 8.74 8.00 7.80 7.97 10.61 10.50 10.50 10.43 10.55 11.05 11.38 11.51 11.86 11.45 11.47 11.81 12.78 12.76 13.17 9.96 10.07 10.23 13.08 12.92 13.17 12.50 12.50 12.63 10.84 10.63 10.92 Apr. 8.27 7.95 8.23 1.44 9.02 8.31 7.98p 10.50 10.49 11.43 11.47 12.75 9.85 13.20 12.75 10.83 8.44 8.64 8.65 8.86 8.34 8.42 8.48 8.49 7.79 7.78 7.83 7.81 10.50 10.50 10.50 10.50 10.42 10.43 10.39 10.76 11.30 11.40 11.39 11.75 11.31 11.31 11.37 11.71 12.68 12.60 12.95 13.18 9.96 9.98 10.)09 10.24 12.91 12.90 12.94 13.02 12.50 12.50 12.50 12.50 10.64 10.59 10.69 10.83 Nov. Dec. 11.47 11.29 9.01 1985--Feb. 6 13 20 27 8.59 8.44 8.57 8.40 8.14 8.21 8.20 8.40 8.25 8.30 8.29 8.57 8.46 8.49 8.46 8.71 Mar. 6 13 20 27 8.63 8.52 8.75 8.38 8.65 8.60 8.54 8.41 8.92 8.92 9.03 8.83 9.04 9.05 9.21 9.01 9.12 9.06 9.13 8.86 8.74 8.73 8.83 8.64 7.82 7.91 7.99 8.03 10.50 10.50 10.50 10.50 11.08 11.03 11.19 11.02 11.9) 11.81 11.95 11.83 11.87 11.78 11.89 11.78 11.14 13.23 11.22 13.06 10.25 10.25 10.24 10.19 13.10 13.20 13.24 13.29 12.50 12.50 12.50 13.00 10.68 10.87 10.97 11.14 Apr. 3 10 17 24 8.68 8.45 8.46 7.69 8.18 8.11 7.98 7.74 8.57 8.53 8.20 7.95 8.79 8.73 8.80 8.55 8.17 8.20 8.06 8.03 8.08 7.92 10.50 10.50 10.50 10.50 10.82 10.79 10.42 10.21 11.70 11.69 11.15 11.18 11.68 11.67 11.36 11.28 12.98 12.71 12.53 12.65 10.09 9.83 8.39 8.68 8.57 8.40 7.99 9.82 13.27 13.23 13. 16 13.12 13.00 13.00 12.50 12.50 10.97 10.83 10.80 10.72 8.35 8.19 8.14 7.82 7.76 7.64 8.07 7.94 7.81 8.29 8.13 8.00 8.21 8.19 8.11 8.11 8.06 7.98 7.83 10.50 10.50 1(.50 10.37 10.16 9.89 11.17 11.22 11.01 11.45 11.33 11.18 12.56 12.49 12.24 9.73 9.56 9.34 13.07 13.012 12.94 12.50 12.50 12.50 10.66 10.61 10.59 8.18 8.24 8.OIp 7.73 7.37 7.40 7.88 7.56 7.59 8.05 7.78 7.84 8.12 8.00 7.95 8.01 7.90 7.87 I1 .014 1 1.24) 1 1.02 I .isp May I 8 15 Daily--May 10 16 17 nl 8.75 7.8.2 7.77 NOTE. Weekly dat forcolumns 1 through I are stateme week averages Data In column 7 are taken from Doroghue' Mony Fund Report Columns 12 and 13 are 1day uote forFriday and Thursday. respeclvely. following the d o the statement week. Column 13 Is the ond Buy revenue Index. Column 14 is an average of contract Intet rateson new commltmnt for conventlonal flrst mortgages wih 80 percent loan-to-value 10.50 10.50 10.50 9.95 9.62 9 .64p 10.81 84 10. p 4.64 ratios at a sample of savings and loan associations on the Friday following the end of the statemnt week. After November 30. 1963, column 15 relets only to VA guaranteed loans Column 16 is the average iniial contract rate on new commitments or one year ARM s at those institutions offering both fixed- and adjustablerate mortgages with thesame number of discount points FR 1367 (446) Security Dealer Positions nay 20. 1985 Millions of dollars i .;asn rosiulons Period Netl Total Tota Treasury bills Treasury coupo over under 1 year 1 year federal agency private short-term Treasury bills I Forward and Futures Positions Treasury cupons under over federal aoency 1 year I year ao enc . III 1984--Hlgh Low 3?.155 i. 107 15,653 -8.251 1,296 -1,038 6,854 -5.664 19,525 11,086 21,046 11.263 8.272 -14,456 -327 1985-High Low 51.514 19,336 14,672 9,601 2,068 -390 6.479 -6,653 21,007 16,693 21,623 14,603 3,823 -14,946 1984--Apr. Nay June 14,408 14.163 16,483 2,929 -7,105 -2,631 -32 -291 -596 -1,643 -1,754 -3.248 16,649 16,849 15,999 13,065 12,525 14,457 -2,140 5,511 2,207 July 12,355 11,499 17,976 -2,382 4,542 10,316 -604 -89 310 -3,391 -1,184 623 16,040 16,098 14,063 14,751 15,556 17,695 -2,528 -7,312 -9,771 21.955 19,094 26.220 11,649 9,748 13,841 116 -487 -416 2,649 5,087 4,762 13,168 16.106 18,470 16,285 17,950 19,180 -9,867 -8,549 -11,718 11,634 12,456 13,979 -110 Har. 24.042 32,974 48.422 851 1,316 2,467 227 -4,338 19,417 19,612 19,337 19.977 19,445 16.214 -13,318 -3,648 841 Apr. 36,702* 11,5590 1,203* -4,534* 32 202 1,114 Aug. Sept. Oct. Nov. Dec. 1985--Jan. Feb. 18,048* 17,566* 20,007 18,846 18,813 19.633 19,533 18,439 -2.950* private shrS.rm ..... shnri.i.n,, 3.381 -986 -7.223 -111,679 19 -128 6,177 -171 -373 -6,190 -8,817 6.988 -14.566 -13 -10 -21 476 347 1,448 -9,422 -9,676 -9,937 -5,462 -2,233 -1,195 2,800 2,504 2,156 -9,650 -9,073 -8,334 -2,592 -9,304 -8,960 -72 -76 59 2,154 533 -389 -8,81 5 -9,229 -8,311 -5,312 -11.991 -9.256 -31 -12 -52 702 2,494 4.677 -7,033 -8,164 -8.351 -9,662 -10,287 4.799 -89 -240 -122 10* 5,583* -7,843* -6,835 -3,082 1,557 -27 -11 -7 2,938 2.225 2,649 -8,164 -8,243 -8,255 -4 -13,053 * 1,939 1985--Feb. 13 20 27 24.458 31.030 45,148 10,534 12.792 13,495 713 851 1,132 Har. 6 13 20 27 53,514 51,956 44,690 46,433 14,198 14,672 13,809 14,342 2.068 1,749 1,157 625 -4.972 -6.653 -4,467 20.223 20,412 19.390 18,456 18,532 16.182 14.603 15,718 3.823 2,773 2,046 -3,026 19 -6 -25 -1Z28 3.632 4,97 4.401 5,779 -8,817 -8,750 -8.285 -7,853 1,638 5,498 4,246 6,998 3 11,723 10,255 13.109 12,198* 858 705 1,019 1,648* -1,988 -4,252 -4,602 -5,840* 16,693 17,372 18,862 18,671* 16.817 16,350 16,536 18.679* -4,819 -3,772 -2,927 -2,993* -75 -14 5,200 5,512 17 24 39,084 34,889 37,605 35.876* 5,678* -8,005 -8,539 -7,910 -7.411* 2,680 1 ,251 -2.663 -4,765* I 8 15 38,156* 37,971* 26.842* 9,513* 11,392* 9.973* 1,545* 1,266* 1,195* -4.626* -4,671* -946* 18,028* 19,243* 19,514* 19,493* 19,984* 18,306* 115* -2,752* -7,404* 67* 1(14* 1(18* 5,380* 6,690* 6,943* -7,341* -7,394* -7,903* -4,012* -5.891* -12,944* Apr. 10 Hay -1,803 NOTE: Government securities dealer cash positions consist of securities already delivered, commllments to buy (sell) scurities on an outright basis for immediate delivery (5 business days or less), and certain "when-issued" securities for delayed delivery (more than 5 business days) Futures and forward positions include all other commllments involving delayed delivery; utures contracts are rranged on organized exchanges. 1. Cash plus forward plus fulures positions in Treasury, federal agency, and private shortterm securities * Strictly conlidentlal 3 10* 6.177 -14.372 -12.084 -3,790 Net Changes In System Holdings of Securities1 Millions of dollars, not seasonally adjusted STRICTLY CONFIDENTIAL (FR) CLASS II-FOMC May 20, 1985 1 Change from end of period to end of period. 5 In addition to the net purchases of securities, also reflects changes in System holdings of bankers' 2 Outright transactions in market and with foreign accounts, and redemptions (-) in bill auctions acceptances, direct Treasury borrowing from the System and redemptions (-) of agency and Trea sury coupon issues. 3 Outright transactions in market and with foreign accounts, and short term notes acquired in ex change for maturing bills. Excludes redemptions, maturity shifts, rollovers of maturing coupon 6 Includes changes in RPs (+), matched sale purchase transactions (-), and matched purchase sale issues, and direct Treasury borrowing from the System transactions (+). 4 Outright transactions in market and with foreign accounts only. Excludes redemptions and maturity shifts. 

Federal Reserve (1985, May 20). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19850521

@misc{wtfs_bluebook_19850521,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1985},
  month = {May},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19850521},
  note = {Retrieved via When the Fed Speaks corpus}
}