FOMC Minutes

Meeting of Federal Open Market Committee April 29, 1969 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, April 29, 1969, at 9:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Hayes, Vice Chairman Bopp Brimmer Clay Coldwell Daane Maisel Mitchell Robertson Scanlon Messrs. Francis, Heflin, Hickman, and Swan, Alternate Members of the Federal Open Market Committee Messrs. Morris, Kimbrel, and Galusha, Presidents of the Federal Reserve Banks of Boston, Atlanta, and Minneapolis, respectively Mr. Holland, Secretary Mr. Broida, Deputy Secretary Messrs. Kenyon and Molony, Assistant Secretaries Mr. Hackley, General Counsel Mr. Brill, Economist Messrs. Axilrod, Baughman, Eastburn, Green, Hersey, Partee, Solomon, and Tow, Associate Economists Mr. Coombs, Special Manager, System Open Market Account 4/29/69 Mr. Sherman, Consultant, Board of Governors Messrs. Coyne and Nichols, Special Assistants to the Board of Governors Mr. Wernick, Associate Adviser, Divi sion 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 Assis tant, Office of the Secretary, Board of Governors Messrs. Taylor, Jones, and Craven, Senior Vice Presidents of the Federal Reserve Banks of Atlanta, St. Louis, and San Francisco, respectively Messrs. Eisenmenger, Sternlight, and Snellings, Vice Presidents of the Federal Reserve Banks of Boston, New York, and Richmond, respectively Mr. Davis, Adviser, Federal Reserve Bank of New York Messrs. Geng and Shotwell, Assistant Vice Presidents of the Federal Reserve Banks of New York and Cleveland, respectively Mr. Kareken, Economic Adviser, Federal Reserve Bank of Minneapolis By unanimous vote, the minutes of actions taken at the meeting of the Federal Open Market Committee held on April 1, 1969, were approved. The memorandum of discussion for the meeting of the Federal Open Market Committee held on April 1, 1969, was accepted. By unanimous vote, the System open market transactions in foreign currencies during the period April 1 through 28, 1969, were approved, ratified, and confirmed. -3 4/29/69 With Messrs. Brimmer and Mitchell dissenting, renewal for further periods of three months, if requested, of the four swap drawings by the Bank of France maturing in the period May 19-20, 1969, and totaling $281 million, was authorized. With Mr. Brimmer dissenting, renewal for further periods of three months, if requested, of the seven swap drawings by the Bank of England maturing in the period May 20 - June 4, 1969, and totaling $800 million, was authorized. By unanimous vote, the open market transactions in Govern ment securities, agency obligations, and bankers' acceptances during the period April 1 through 28, 1969, were approved, ratified, and confirmed. By unanimous vote, 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 accordance with the following current economic policy directive: The information reviewed at this meeting suggests that expansion in real economic activity has moderated only slightly since the fourth quarter of 1968. At the same time, substantial upward pressures on prices and costs are persisting. Long-term interest rates have generally declined in recent weeks, but most short-term rates have risen somewhat. In the first quarter of the year bank credit changed little on average and the money supply grew at a sharply reduced rate. In early April both measures increased substantially, influenced in part by large tax-date borrowing and deposit bulges around Easter. The outstanding volume of large-denom ination CD's has continued to decline and there was a net outflow of consumer-type time and savings 4/29/69 deposits from banks and other thrift institutions in the first half of April. A sizable deficit reemerged in the U. S. balance of payments on the liquidity basis in the first quarter but the balance on the official settlements basis remained in surplus as a result of large inflows of Euro-dollars. In this situation, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to the reduction of inflationary pressures, with a view to encouraging a more sustainable rate of economic growth and attaining reasonable equilibrium in the country's balance of payments. To implement this policy, while taking account of the forthcoming Treasury refunding, System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining the pre vailing firm conditions in money and short-term credit markets; provided, however, that operations shall be modified, to the extent permitted by the Treasury refunding, if bank credit appears to be deviating significantly from current projections. It was agreed that the next meeting of the Committee would be held on Tuesday, May 27, 1969, at 9:30 a.m. The meeting adjourned. Secretary

Federal Reserve (1969, April 28). FOMC Minutes. Fomc Minutes, Federal Reserve. https://whenthefedspeaks.com/doc/fomc_minutes_19690429

@misc{wtfs_fomc_minutes_19690429,
  author = {Federal Reserve},
  title = {FOMC Minutes},
  year = {1969},
  month = {Apr},
  howpublished = {Fomc Minutes, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/fomc_minutes_19690429},
  note = {Retrieved via When the Fed Speaks corpus}
}