Speech

Introduction • Institutional Details • Typical Meeting • Meeting on January 30 & 31, 1996 • Key Public Policy Issues 38 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Institutional Details • Composition - 7 Governors - New York Fed president - A president from each of the following groups: * Boston, Philadelphia, Richmond * Cleveland, Chicago * Atlanta, Dallas, St. Louis * Minneapolis, Kansas City, San Francisco Institutional Details • Role - Direct open-market operations of Reserve Banks • Meetings - Regular - 8 times per year in Washington wasnington I A^ - Other - upon the call of Fed Chairman AW*> . J <2 0 or at request of any 3 members or frrrl^ fA^ 39 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 0^Lncj^^r€Z .7 6JI <hL.Tl<h£7<— </* TV>J^ p^iTfo^U &*-*£ dot '« r Typical Meeting t Approval of minutes i) Report of manager fo^forei domestic operations - Approval of transactions Staff economic briefing Committee discussion of economy Staff policy briefing Committee discussion of policy options Vote on directive ( (J r*\JOT€Z) Press release ($£*T £ * '/ f^-o-x il7*+'n ^^ Meeting on January 30 & 31,1996 • Action taken - discount rate cut 25 basis points to 5 percent - full amount allowed to show through to reserve market, resulting in Fed Funds rate of 51/4 percent 0 *^ • Basis of action - moderating economic expansion, reduced potential inflationary pressures I - price and cost trends already subdued 0 • Subsequent developments ^i Digitized for FRASER i* http://fraser.stlouisfed.org/^ S* Federal Reserve Bank of St. Louis I/NJAI^TI (-'I ^ yBlue Chip GDP Forecasts for 1996 4 -I 3.5 3 2.5 1 i-i 1 2 -H H 1-1 H h- - 1.5 - - - -- 1 - - - - -- - 0.5 - - - -- - 0 -H hr h-^ h-^ hr h-^ h 1 1 1 1 1 1 J F M A M J J A S O ND Blue Chip CPI Forecasts for 1996 4 T 3.5 -T-rn-n-n-rhr>rT^ 2.5 - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - -- - 2 1.5 - - - - - - - - - - - - - -- - 1 - - - - - - - - - - - - - - - -- - _ _ _ __ _ _ _ _ _ _ _ _ __ 0 5 0 I i i i—hr—i i i i i — i i—hr—'i' 'r 'r—'r ' r — h — i — i — i — i —i J F M A M J J A S O N DJ F M A MJ J A S ON Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Michigan Mean Inflation Expectations Before January 30-31,1996 Meeting Jan-95 Apr-95 Jul-95 Oct-95 Jan-96 1( ^ Michigan Mean Inflation Expectations After January 30-31,1996 Meeting 3 H 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Jan-95 Apr-95 Jul-95 Oct-95 Jan--9955 AApprr--9955 42 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Interest Rates Before January 30-31,1996 Meeting Jan 95 Apr 95 Jul 95 Oct 95 Jan 96 Apr 96 Interest Rates After January 30-31,1996 Meeting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Key Pkblic Policy Issues • Appropriated objective(s) of monetary policy- price stability, short-run fine tuning or both • Accountabilityof committee and individual members • Openness ability to deliberate versus disclosure / Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Thomas C. Melzer (1996, June 26). Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/speech_19960627_melzer

@misc{wtfs_speech_19960627_melzer,
  author = {Thomas C. Melzer},
  title = {Speech},
  year = {1996},
  month = {Jun},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/speech_19960627_melzer},
  note = {Retrieved via When the Fed Speaks corpus}
}