FOMC Minutes

Meeting of Federal Open Market Committee October 29, 1968 MINUTES OF ACTIONS A meeting of the Federal Open Market Committee was held in the offices of the Board of Governors of the Federal Reserve System in Washington, D. C., on Tuesday, October 29, 1968, at 9:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Hayes, Vice Chairman Brimmer Daane Galusha Hickman Kimbrel Maisel Mitchell Morris Robertson Sherrill Messrs. Bopp, Clay, Coldwell, and Scanlon, Alternate Members of the Federal Open Market Committee Messrs. Heflin, Francis, and Swan, Presidents of the Federal Reserve Banks of Richmond, St. Louis, and San Francisco, respectively Mr. Holland, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Mr. Broida, Assistant Secretary Mr. Molony, Assistant Secretary Mr. Hackley, General Counsel Mr. Brill, Economist Messrs. Axilrod, Hersey, Kareken, Link, Mann, Partee, Reynolds, Solomon, and Taylor, Associate Economists Mr. Holmes, Manager, System Open Market Account 10/29/68 Mr. Coombs, Special Manager, System Open Market Account Messrs. Gramley and Williams, Advisers, Division of Research and Statistics, Board of Governors Mr. Wernick, Associate Adviser, Division of Research and Statistics, Board of Governors Mr. Keir, Assistant Adviser, Division of Research and Statistics, Board of Governors Mr. Bernard, Special Assistant, Office of the Secretary, Board of Governors Miss Eaton, Open Market Secretariat Assistant, Office of the Secretary, Board of Governors Messrs. Eisenmenger, Eastburn, Parthemos, Baughman, Jones, Tow, Green, and Craven, Vice Presidents of the Federal Reserve Banks of Boston, Philadelphia, Richmond, Chicago, St. Louis, Kansas City, Dallas, and San Francisco, respectively Mr. Meek, Assistant Vice President, Federal Reserve Bank of New York By unanimous vote, the minutes of actions taken at the meeting of the Federal Open Market Committee held on October 8, 1968, were approved. The memorandum of discussion for the meeting of the Federal Open Market Committee held on October 8, 1968, was accepted. By unanimous vote, the System open market transactions in foreign currencies during the period October 8 through 28, 1968, were approved, ratified, and confirmed. 10/29/68 -3 By unanimous vote, renewal for further periods of one year of the following swap arrangements, having the indicated amounts and maturity dates, was approved: Foreign bank Amount of agreement (millions of dollars) Maturity of latest authorized renewal Austrian National Bank 100 December 2, 1968 National Bank of Belgium 225 December 23, 1968 1,000 December 30, 1968 Bank of Canada 100 December 2, 1968 Bank of England 2,000 December 2, 1968 German Federal Bank 1,000 December 16, 1968 Bank of Italy 1,000 December 30, 1968 Bank of Japan 1,000 December 2, National Bank of Denmark 1968 Bank of Mexico 130 December 2, 1968 Netherlands Bank 400 December 30, 1968 Bank of Norway 100 December 2, 1968 Bank of Sweden 250 December 2, 1968 Swiss National Bank 600 December 2, 1968 Bank for International Settlements: System drawings in Swiss francs System drawings in authorized European currencies other than Swiss francs 1,000 December 2, 1968 December 2, 1968 10/29/68 By unanimous vote, the open market transactions in Government securities, agency obligations, and bankers' acceptances during the period October 8 through 28, 1968, were approved, rati fied, and confirmed. With Mr. Hayes dissenting, the Federal Reserve Bank of New York was authorized and directed, until otherwise directed by the Committee, to execute transactions in the System Account in accord ance with the following current economic policy directive: The information reviewed at this meeting suggests that over-all economic expansion has moderated somewhat from its very rapid pace earlier in the year, although less than projected, and that upward pressures on prices and costs are persisting. Market interest rates have risen in recent weeks. Bank credit and time and savings deposits have continued to expand rapidly, but savings inflows to thrift institutions have remained moderate. The money supply, after growing little on balance during the summer, has increased in recent weeks. The U.S. foreign trade balance and underlying payments position continue to be matters of serious concern. In this situation, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to sustainable economic growth, continued resistance to inflationary pressures, and attainment of reasonable equilibrium in the country's balance of payments. To implement this policy, while taking account of the current Treasury financing, System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining about the prevailing conditions in money and short-term credit markets; provided, however, that operations shall be modified, to the extent permitted by the Treasury financing, if bank credit expansion appears to be exceeding current projections. 10/29/68 -5 It was agreed that the next meeting of the Committee would be held on Tuesday, November 26, 1968, at 9:30 a.m. The meeting adjourned. Secretary

Federal Reserve (1968, October 28). FOMC Minutes. Fomc Minutes, Federal Reserve. https://whenthefedspeaks.com/doc/fomc_minutes_19681029

@misc{wtfs_fomc_minutes_19681029,
  author = {Federal Reserve},
  title = {FOMC Minutes},
  year = {1968},
  month = {Oct},
  howpublished = {Fomc Minutes, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/fomc_minutes_19681029},
  note = {Retrieved via When the Fed Speaks corpus}
}