FOMC Statement

APPENDIX Charts used by Mr. Fisher in his presentation Page 1 3-Month Deposit Rates July 1,1997 - August 14, 1998 Current euro-deposit rate and rates implied by traded forward rate agreements LIBOR Fixing 3-mo. forward 9-mo. forward United States Germany Japan Percent Percent 6.4 A S O N D F M A M J J A 1997 1998 Page 2 Foreign Equity Indices 1, July 1997 July 1,1998 Index=100 July 1, 1997 - August 14, 1997 Index=100 July 1, 1998 - August 14, 1998 FOMC 125.0 125 Humphrey Obuchi Canada Hawkin Elected TSE Testimony LDP 100 Mexico Japan 75 75 Hang Seng 87.5 Singapore 87.5 Singapore Canada 50 Straights Times 50 Hong Kong 75 75.0 75.0 25 25 1-Jul-97 18-Sep-97 5-Dec-97 26-Feb-98 15-May-98 4-Aug-98 1-Jul-98 13-Jul-98 22-Jul-98 31-Jul-98 11-Aug-98 German Dax and S&P 500 July 1, 997 July 1, 1998 index=100 July 1, 1997 - August 14, 1998 Index=100 July 1, 1998 - August 14, 1998 180 80 FOMC Humphrey Obuchi 120 Hawkins Elected 160 160 stimon LDP 6 160 President 140 140 DAX DAX S&P 100 100 120 120 S&P 110000 100 80 8 0 1-Jul-97 8-Sep-97 5-Dec-97 26-Feb-98 15-May-98 4-Aug-98 1-Jul-98 13-Jul-98 22-Jul-98 31-Jul-98 11-Aug-98 U.S. and German 10-Year Govt.Yields Percent July 1, 1997 - August 14, 1998 Percent July 1, 1997 - August 14, 1998 6.50 6.50 FOMC 6.25 6.25 Humphrey Obuchi 6.00 6.O0 Hawkins Elected U.S. 5.25 testimony LDP 5.25 5 75 5. President 5.50 5.50 5 5.25 5.25 5.00 4.75 Germany 4.75 475 4.75 4.5 4.50 1-Jul-97 16-Sep-97 2-Dec-97 18-Feb-98 7-May-98 23-Jul-98 1-Jul-98 10-Jul-98 21-Jul-98 30-Jul-98 10-Aug-98 August Dollar Appreciation Page 3 July 1, 1997 July 1, 1997 Index=100 ge rates indexed to July 1, 1997 Index=100 130.0 130.0 120.0 120.0 ar 110.0 110.0 100.0 dollar 100.0 90.0 90.0 01-Jul-97 19-Sep-97 10-Dec-97 2-Mar-98 20-May-98 5-Aug-98 Dollar Against Yen and Mark Yen per Dollar Marpkesr Dollar 150.0 2.3 145.0 2.2 140.0 2.1 135.0 130.0 2.0 125.0 1.9 120.0 1.8 115.0 110.0 1.7 1-Jul-97 19-Sep-97 10-Dec-97 2-Mar-98 20-May-98 5-Aug-98 Yen per Mark Yen per Mark Yen per Mark 80.0 80.0 75.0 75.0 70.0 70.0 65.0 65.0 1-Jul-97 19-Sep-97 10-Dec-97 2-Mar-98 20-May-98 5-Aug-98 Page 4 Implied Yields on Fed Funds and Eurodollar Futures Percent Percent 5.9 5.9 5.8 5.8 5.7 5.7 5.6 5.6 5.5 5.5 5.4 5.4 1-May-98 15-May-98 1-Jun-98 15-Jun-98 29-Jun-98 14-Jul-98 28-Jul-98 11 -Aug-998 Positive Carry of On-the-run Treasury Issues May Percent 15, 1998 Percent August 17, 1998 Percent 6 Fed Funds Target Yield Curve 5 Term to Date RP Rates 4 4 2 5 10 30 2 5 10 DAILY FEDERAL FUNDS TRADING RANGE, EFFECTIVE AVERAGE & ONE STANDARD DEVIATION Percent July 2 to Present Percent Per. Avg. Rate: 5.48% 5.52% 5.55% Per Avg. Excess: $1.3bn. $1.4bn. $1.5bn. 7 Range Effective +/- one standard Fed Funds Target Rate deviation around effective 16 17 20 21 22 23 24 27 28 29 30 31 3 4 5 6 7 10 11 12 13 14 2 3 6 7 8 9 10 13 14 15 Jul Aug Page 6 PRIMARY DEALERS NO CHANGES SINCE AUGUST 1997 1. Barclays Capital Inc. 14. Greenwich Capital Markets, Inc. 2. Bear, Stearns & Co., Inc. 15. HSBC Securities, Inc. 3. BT Alex. Brown Incorporated 16. Aubrey G. Lanston & Co., Inc. 4. Chase Securities Inc. 17. Lehman Brothers Inc. 5. CIBC Oppenheimer Corp. 18. Merrill Lynch Government Securities Inc. 6. Credit Suisse First Boston Corporation 19. J. P. Morgan Securities, Inc. 7. Daiwa Securities America Inc. 20. Nesbitt Burns Securities Inc. 8. Deutsche Bank Securities Inc. 21. The Nikko Securities Co. International, Inc. 9. Dresdner Kleinwort Benson North America LLC. 22. Nomura Securities International, Inc. 10. Donaldson, Lufkin & Jenrette Securities Corp. 23. Paine Webber Incorporated 11. First Chicago Capital Markets, Inc. 24. Paribas Corporation 12. Fuji Securities Inc. 25. Prudential Securities Incorporated 13. Goldman, Sachs & Co. 26. Zions First National Bank AUGUST 1997 AUGUST 1998 PENDING 27. Morgan Stanley & Co. Incorporated 27. Morgan Stanley & Co. Incorporated 28. Dean Witter Reynolds Inc. 29. SBC Warburg Inc. 28. Warburg Dillon Read LLC. 30. Dillon, Read & Co. Inc. 31. UBS Securities LLC. 32. Salomon Brothers Inc. 29. Salomon Brothers Inc./Smith Barney Inc. 29. Salomon Brothers Inc./Smith 33. Smith Barney Inc. 30. Citicorp Securities, Inc. Barney Inc./Citicorp Securities, Inc. 34. Citicorp Securities, Inc. 35. BA Securities, Inc. 31. BancAmerica Robertson Stephens 30. BancAmerica Robertson 36. NationsBanc Capital Markets, Inc. 32. NationsBanc Montgomery Securities LLC. Stephens/ NationsBanc Montgomery Securities LLC. Withdrawals Applications 37. Yamaichi International (America), Inc. (12/97) 31. Societe General 38. Eastbridge Capital Inc. (5/98) 32. ABN Amro North America, Inc. 39. Sanwa Securities (USA) Co., L. P. (7/98)

Federal Reserve (1998, August 17). FOMC Statement. Fomc Statements, Federal Reserve. https://whenthefedspeaks.com/doc/fomc_statement_19980818

@misc{wtfs_fomc_statement_19980818,
  author = {Federal Reserve},
  title = {FOMC Statement},
  year = {1998},
  month = {Aug},
  howpublished = {Fomc Statements, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/fomc_statement_19980818},
  note = {Retrieved via When the Fed Speaks corpus}
}