FOMC Minutes

Meeting of Federal Open Market Committee October 28, 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, October 28, 1969, at 9:30 a.m. PRESENT: Mr. 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 Sherrill Messrs. Francis, Heflin, and Swan, Alternate Members of the Federal Open Market Committee Messrs. Morris and Kimbrel, Presidents of the Federal Reserve Banks of Boston and Atlanta, respectively Mr. Holland, Secretary Mr. Broida, Deputy Secretary Messrs. Kenyon and Molony, Assistant Secretaries Mr. Hackley, General Counsel Mr. Partee, Economist Messrs. Axilrod, Baughman, Gramley, Green, Hersey, Solomon, and Tow, Associate Economists Mr. Holmes, Manager, System Open Market Account Mr. Cardon, Assistant to the Board of Governors Messrs. Coyne and Nichols, Special Assistants to the Board of Governors -2 10/28/69 Mr. Williams, Adviser, Division of Research and Statistics, Board of Governors Messrs. Keir and Wernick, Associate Advisers, Division of Research and Statistics, Board of Governors Mr. Bernard, Special Assistant, Office of the Secretary, Board of Governors Mr. Wendel, Chief, Government Finance Section, Division of Research and Statistics, Board of Governors Miss Eaton, Open Market Secretariat Assistant, Office of the Secretary, Board of Governors Messrs. MacDonald and Strothman, First Vice Presidents of the Federal Reserve Banks of Cleveland and Minneapolis, respectively Messrs. Eisenmenger, Parthemos, Taylor, Jones, and Craven, Senior Vice Presidents of the Federal Reserve Banks of Boston, Richmond, Atlanta, St. Louis, and San Francisco, respectively Mr. Hocter, Vice President, Federal Reserve Bank of Cleveland Messrs. Garvy and Kareken, Economic Advisers, Federal Reserve Banks of New York and Minneapolis, respectively Messrs. Bodner and Meek, Assistant Vice Presidents, Federal Reserve Bank of New York Mr. Willes, Senior Economist, Federal Reserve Bank of Philadelphia Mr. Sandberg, Special Assistant, Securities Department, 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 7, 1969, were approved. The memorandum of discussion for the meeting of the Federal Open Market Committee held on October 7, 1969, was accepted. 10/28/69 By unanimous vote, the System open market transactions in foreign currencies during the period October 7 through October 27, 1969, were approved, ratified, and confirmed. By unanimous vote, renewal for further periods of three months, if requested, of the seven swap drawings by the Bank of England maturing in the period November 10 to December 3, 1969, was authorized. 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 arrangement (millions of dollars) Austrian National Bank National Bank of Belgium Bank of Canada National Bank of Denmark Bank of England Bank of France German Federal Bank Bank of Italy Bank of Japan Bank of Mexico Netherlands Bank Bank of Norway Bank of Sweden Swiss National Bank Bank for International Settlements: Dollars against Swiss francs Dollars against authorized European currencies other than Swiss francs 200 500 1,000 200 2,000 1,000 1,000 Maturity of latest authorized renewal 1,000 130 300 200 250 600 December December December December December December December December December December December December December December 1969 1969 1969 1969 1969 1969 1969 1969 1969 1969 1969 1969 1969 1969 600 December 2, 1969 1,000 December 2, 1969 1,000 10/28/69 By unanimous vote, the open market transactions in Govern ment securities, agency obligations, and bankers' acceptances during the period October 7 through 27, 1969, were approved, rati fied, 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 indicates that the pace of expansion in real economic activity was sustained in the third quarter by an acceleration of inventory investment, which about offset a further slackening in growth of private final sales. Slower over-all growth is projected for the fourth quarter, although some cross-currents have been evident in the recent behavior of monthly economic measures. Prices and costs are continuing to rise at a rapid pace. Most market interest rates have declined considerably on balance from their recent highs, in large part because of changing expectations. In the third quarter, aver age monthly bank credit declined and the money supply changed little; in October it appears that bank credit is decreasing further on average but that the money supply is growing somewhat. In recent weeks the net contraction of outstanding large-denomination CD's slowed markedly, apparently reflecting mainly an increase in foreign official time deposits, but flows of consumer-type time and savings funds at banks and nonbank thrift institutions appear to have remained relatively weak. The U.S. foreign trade surplus increased further in September, but the deficit in the over-all balance of payments was still large on the liquidity basis and even larger on the official settlements basis. The appreciation of the German mark since the end of September, culminating in the revaluation of the official parity, has led to a partial reversal of speculative flows, and conditions in the Euro-dollar market have eased. In light of -5- 10/28/69 the foregoing developments, 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 sustainable economic growth and attaining reasonable equilibrium in the country's balance of payments. To implement this policy, System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining the prevailing firm conditions in money and short-term credit markets; provided, however, that operations shall be modified if bank credit appears to be deviating significantly from current projections. It was agreed that the next meeting of the Federal Open Market Committee would be held on Tuesday, November 25, 1969, at 9:30 a.m. The meeting adjourned. Secretary

Federal Reserve (1969, October 27). FOMC Minutes. Fomc Minutes, Federal Reserve. https://whenthefedspeaks.com/doc/fomc_minutes_19691028

@misc{wtfs_fomc_minutes_19691028,
  author = {Federal Reserve},
  title = {FOMC Minutes},
  year = {1969},
  month = {Oct},
  howpublished = {Fomc Minutes, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/fomc_minutes_19691028},
  note = {Retrieved via When the Fed Speaks corpus}
}