FOMC Minutes

Meeting of Federal Open Market Committee April 17, 1972 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 Monday, April 17, 1972, at 4:30 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Burns, Chairman Hayes, Vice Chairman Brimmer Coldwell Daane Eastburn MacLaury Maisel Mitchell Robertson Sheehan Winn Messrs. Francis, Heflin, Mayo, and Swan, Alternate Members of the Federal Open Market Committee Messrs. Morris, Kimbrel, and Clay, Presidents of the Federal Reserve Banks of Boston, Atlanta, and Kansas City, respectively Mr. Holland, Secretary Mr. Broida, Deputy Secretary Messrs. Altmann and Bernard, Assistant Secretaries Mr. Hackley, General Counsel Mr. Partee, Senior Economist Mr. Axilrod, Economist (Domestic Finance) Messrs. Boehne, Bryant, Green, Hersey, and Hocter, Associate Economists Mr. Holmes, Manager, System Open Market Account 4/17/72 Mr. Melnicoff, Deputy Executive Director, Board of Governors Mr. O'Connell, General Counsel, Board of Governors Messrs. Keir and Pierce, Advisers, Division of Research and Statistics, 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. Parthemos, Taylor, Scheld, Tow, and Craven, Senior Vice Presidents, Federal Reserve Banks of Richmond, Atlanta, Chicago, Kansas City, and San Francisco, respectively Messrs. Bodner and Nelson, Vice Presidents, Federal Reserve Banks of New York and Minneapolis, respectively Mr. Garvy, Economic Adviser, Federal Reserve Bank of New York Mrs. Greenwald, Economist, Federal Reserve Bank of Boston The Secretariat's recommendations for making historical Committee records available to the public, as contained in the memorandum dated April 11, 1972, were approved. By unanimous vote, paragraph 1(c) of the continuing authority directive with respect to domestic open market operations was amended to read as follows: To buy U.S. Government securities, obligations that are direct obligations of, or fully guaranteed as to principal and interest by, any agency of the United States, and prime bankers' acceptances with maturities of 6 months or less at the time of purchase, from nonbank dealers for the account of the Federal Reserve Bank of New York under agreements for repurchase of such securities, obligations, or acceptances in 15 calendar days or less, at rates that, unless otherwise expressly authorized by the Committee, shall be determined by competitive bidding, after applying 4/17/72 reasonable limitations on the volume of agreements with individual dealers; provided that in the event Govern ment securities or agency issues covered by any such agreement are not repurchased by the dealer pursuant to the agreement or a renewal thereof, they shall be sold in the market or transferred to the System Open Market Account; and provided further that in the event bankers' acceptances covered by any such agreement are not repurchased by the seller, they shall continue to be held by the Federal Reserve Bank or shall be sold in the open market. By unanimous vote, guideline 6 for the conduct of System operations in Federal agency issues was amended to read as follows: System holdings of any one issue at any one time will not exceed 20 per cent of the amount of the issue outstanding. Aggregate holdings of the issues of any one agency will not exceed 10 per cent of the amount of outstanding issues of that agency. The meeting adjourned. Secretary

Federal Reserve (1972, April 16). FOMC Minutes. Fomc Minutes, Federal Reserve. https://whenthefedspeaks.com/doc/fomc_minutes_19720417

@misc{wtfs_fomc_minutes_19720417,
  author = {Federal Reserve},
  title = {FOMC Minutes},
  year = {1972},
  month = {Apr},
  howpublished = {Fomc Minutes, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/fomc_minutes_19720417},
  note = {Retrieved via When the Fed Speaks corpus}
}