Prefatory Note The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the best- preserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act. 1 In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing). 2 A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff. Content last modified 6/05/2009.
Transcript
Prefatory Note The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the best-preserved paper copies, scanning those copies,1
and then making the scanned versions text-searchable.2
Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act. 1 In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing). 2 A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff.
Content last modified 6/05/2009.
(CONFIDENTIAL FR)
MONETARY AGGREGATESANDMONEY MARKET CONDITIONS
Prepared for the Federal Open Market Committee
By the Staff
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
May 17, 1974
CONFIDENTIAL (FR) May 17, 1974
MONETARY AGGREGATES ANDMONEY MARKET CONDITIONS
Recent developments
(1) M1 increased at an annual rate of 8.3 per cent in April.
Growth appears to be moderating in May, and M1 is indicated to expand
at a 6.5 per cent annual rate over the April-May period, slightly
below the upper end of the Committee's range of tolerance. Growth
in M2 also appears to be slowing over April and May, to a rate slightly
below the mid-point of its range of tolerance, reflecting somewhat
more moderate expansion of time deposits (other than large CD's) than
projected at the time of the April Committee meeting.1/ Deposit in-
flows at nonbank thrift institutions have slowed markedly. Estimates
for April show no growth, seasonally adjusted, at mutual savings banks
and only a 4 per cent rate of growth at S&L's; data for recent weeks
suggest the possibility of an even weaker performance in May.
1/ Growth rates for M1 and M2 are based on revised data. Money supplyfigures have been revised back to October to reflect December callreport information for nonmember banks and new data for foreign agenciesand branches. The revision raises the annual rate of growthfor M1 from 7.5 to 8.9 per cent in the fourth quarter of 1973,and from 6.7 to 7.1 per cent in the fourth quarter of 1974. Levelsof M 1 for December and March are raised by $1 and $1.3 billion,respectively. The old and revised series are compared in appendixtable V.
1/ On April 24 the Committee raised the upper limit of the Federal fundsrate range from 10% per cent to 11 per cent; on May 16, the Committeeagreed to change the ceiling guideline to 11% per cent.
(2) CD's and other non-deposit sources, however, expanded much
more rapidly than projected for the inter-meeting period, as bueiness
loan demands remained strong. Mainly as a result of this, estimated RPD
growth for the April-May period is far above the upper end of the Committee's
range of tolerance, as indicated in the table below.
Comparison of Projected Changes in RPD's by Use
April-May 1974(In millions of dollars)
Projections as ofApril 16, 1974 Current
FOMC meeting Projectio
Change in Total RPD's 1/ 561 1179
Change in Category of Use:
Private demand deposits
Time deposits other than large CD's
CD's and nondeposit funds
Excess
18
25
485
60
59
61
987
73
I/ Changes from March to May 1974.
n.
-3-
(3) Following the April FOMC meeting, incoming deposit data
suggested that growth in both M 1 and M2 would exceed the upper end of
their ranges of tolerance. Accordingly, the Account Manager adopted a
more reluctant approach to the provision of reserves, expecting the
Federal funds rate to move up to around 10¾ per cent, the upper end of
its range. Money market pressures proved unexpectedly strong, however,
and Federal funds began to trade around 11 per cent toward the end of
the statement week ending April 24th. Given these conditions, and the action
to raise the discount rate to 8 per cent on April 24, Chairman Burns
recommended on that day raising the upper end of the tolerance range for
the Federal funds rate to 11 per cent. A majority of the Committee members
concurred in this recommendation.
(4) Subsequently, the Account Manager sought reserve conditions
consistent with an 11 per cent Federal funds rate. Unusually strong
money market pressures persisted, however, and the Federal funds rate
averaged above 11 per cent. In the past statement week the effective
rate has been consistently close to 11 per cent, although today it
eased to about 11.35 per cent. It appears that member banks have had
a strong preference to avoid borrowing at the discount window, opting
instead to pay a higher rate on Federal funds. Apart from special
borrowing by a problem bank, member bank borrowing over the past two
statement weeks averaged $1.6 billion, down from an average of almost
$2 billion in the previous three weeks.
(5) The Desk has been handicapped in attempting to counteract
these pressures by the technical state of the markets for Treasury and
-4-
Federal Agency securities. Dealer positions in U.S. Government securities
have been depleted throughout the period, reflecting the state of
expectations in the dealer community, sizable Desk purchases, and good
retail demand. Collateral for repurchase agreements has also been on
the scarce side. Moreover, dealers have withdrawn sizable amounts of
repurchase agreements before maturity because they have been making
considerable net sales of Treasury securities to the public.
(6) On May 17, Chairman Burns recommended that the Committee
take note of the difficulties faced by the Desk in the recent period.
Also, given the likelihood that the technical problems encountered might
persist over the next few days, the Chairman expressed the view that it
would be appropriate to change the ceiling guideline for the funds rate
from 11 to ll¼ per cent. A majority of Committee members concurred in the
Chairman's recommendations.
(7) After rising sharply early in the inter-meeting period,
interest rates on Treasury securities, particularly on Treasury bills,
have dropped considerably in recent days. The 3-month bill rate was
quoted 7.93 per cent at the close on Friday, as compared with an average
issuing rate of 9.02 per cent established in the auction of May 6. The
rally in the Treasury securities market has been generated not only by
the previously noted shortage of issues, but also by an apparent shift
of investor preferences toward securities of the highest quality, sparked
by news stories regarding the problems of the Franklin National Bank and
widespread rumors that some other banks and financial houses might also
be encountering difficulties.
-5-
(8) Private short-term rates have risen sharply since the
last Committee meeting. Banks have raised their prime rates from the
10 per cent level prevailing in mid-April into an 11¼ --11½ per cent
range. Yields on large CD's and commercial paper with 3-month maturity
dates have risen a percentage point or more to levels above 11 per cent.
Evidence of a move toward higher quality securities is also apparent in
these sectors of the credit markets. There are reports, for example, that
a number of investors have reduced the list of institutions whose
commercial paper, bankers' acceptances, and negotiable CD's they are
prepared to acquire. And there has been a marked widening of the yield
spread between issues of prime and lower grade borrowers in these markets.
(9) For its mid-May refunding operations, the Treasury
decided to pay down $1.6 billion of the $5.6 billion of maturing debt
and to refund the remainder by issuing three securities: $2.0 billion
of an 8¾, 25½ month note; $1.75 billion of an 8¾, 4¼ year note; and
$300 million of a 8.50 per cent, 25-year bond. Both notes were auctioned
at prices near par and currently are quoted above their auction averages.
The bond was auctioned at a substantial premium to provide a yield of
8.23 per cent; the premium subsequently increased enough to reduce the
yield to 8.13 per cent, but most recently the price has fallen back to
about the auction average. Dealers have now distributed the bulk of
their awards of all three issues.
(10) The table on the next page shows (in percentage annual
rates of change) selected monetary and financial flows over various recent
time periods; money supply figures are on a revised basis. Appendix
-6-
table III compares money supply growth rates computed on a quarterly-
average basis with those computed on a last-month-of-quarter basis.
Projected figures on the two bases are shown in appendix table IV for
the three alternatives presented in the next section.
Average Past Past Pastof Past Three Twelve Six Three Past
Calendar Years Months Months Months Month
1971 Apr. '74 Apr. '74 Apr. '74 Apr. '74-- over over over over
1973 Apr. '73 Oct. '73 Jan. '74 Mar. '74
Total reserves 8.5 8.2 7.5 .7 33.1
Nonborrowed reserves 7.6 8.6 6.2 -7.1 19.4
Reserves available to supportprivate nonbank deposits 8.8 9.8 7.1 10.6 20.0
Concepts of Money (revised series)
M1 (currency plus demanddeposits) 1/ 7.0 7,2 8.6 10.8 8.3
M2 (M1 plus time depositsat commercial banksother than large CD's) 10.4 9.6 10.1 10.3 8.2
1/ Other than interbank and U.S. Government.2/ Based on month-end figures. Includes loans sold to affiliates and branches.
NOTE: All items are based on averages of daily figures, except for data on totalloans and investments of commercial banks, commercial paper, and thriftinstitutions--which are derived from either end-of-month or last Wednesday-of-month figures. Growth rates for reserve measures in this and subsequenttables are adjusted to remove the effect of discontinuities from breaks inthe series when reserve requirements are changed.
Prospective developments
(11) Alternative policy approaches are summarized below for
Committee consideration (with more detailed figures shown in the table
on P.8a).
Alt. A Alt. B Alt. C
Targets (2nd & 3rd qtrs.combined)
M1 6¼ 5½ 4¾
M2 6½ 6 5
Credit proxy 14 12 10
Associated ranges forMay-June
RPD 18-20 16½-18½ 15½-17½
M1 5-7 4½-6½ 4-6
M2 5½-7½ 5-7 4-6
Federal funds rate range 10-12 11-13 12-14(inter-meeting period)
(12) At its last meeting, the Committee established a 5½ per
cent annual rate of growth for M1 from March to September as its longer-
run target. Since then, the March level of M1 has been raised by
$1.3 billion, reflecting revisions for new year-end benchmark data (as
explained in the footnote on page 1). The 4¾ per cent annual rate of
growth for M1 in alternative C has been set to compensate for this
upward revision. As shown in the chart on the following page, such a
growth rate would achieve the M1 level in September that was implicit in
the longer-run path adopted by the Committee at its last meeting.
Alternative B continues a 5½ per cent growth rate for M1, but from the
MONEY SUPPLY AND LONGER RUN TARGET PATH
RATIO SCALE, BILLIONS OF DOLLARS
4 3 %% GROWTH ..
REVISED SERIES .-- - 280
GROWTHRATE OF GROWTHDEC. '72 TO MAR. '74 6.4%
LEVEL
- 270
- 260
J A SJ A S 0 N D J F M A M1973 1974
II I I I ~I
Alternative Longer-Run Targets for Key Monetary Aggregates
without separate reference to "international" and "domestic" developments.
In alternative C, it is proposed to give special emphasis to that
phase--i.e.,". . .while taking careful account. . ."--in view of the
strong possibility of exaggerated market reactions to the sharp rise in
interest rates associated with open market operations designed to achieve
the specified rates of growth in the aggregates.
Alternative A
To implement this policy, while taking account of [DEL: the
forthcoming Treacury financing and of internationl and domestic]
financial market developments, the Committee seeks to achieve bank
reserve and money market conditions [DEL: that would moderate] CONSISTENT
WITH MODERATE growth in monetary aggregates over the months ahead.
-14-
Alternative B
To implement this policy, while taking account of [DEL: the
forthcoming Treasury financing and of international and domestic]
financial market developments, the Committee seeks to achieve
bank reserve and money market conditions that would moderate
growth in monetary aggregates over the months ahead.
Alternative C
To implement this policy, while taking CAREFUL account of
[DEL: the forthcoming Treasury financing and of international and domestic]
financial market developments, the Committee seeks to achieve bank
reserve and money market conditions that would moderate SLOW
APPRECIABLY THE growth in monetary aggregates over the months ahead.
(23) In the event that the Committee wishes to couch the
operational paragraph of the directive in terms of money market conditions,
the specifications of alternative A might be associated with language
indicating that ". . .the Committee seeks to maintain about the pre-
vailing restrictive money market conditions, provided that the monetary
aggregates appear to be growing at rates within the specified ranges
of tolerance."
CHART 1 STRICTLY CONFIDENTIAL (FR)5/17/74
RESERVES AVAILABLE TO SUPPORTPRIVATE NONBANK DEPOSITS
BILLIONS OF DOLLARS40
-38
I II 11111111 11 i ilii-I _ I L I I l I I I , I 4 1 i I I I I - lM J S 0 M J S D
]973 1974
SBreak in Series Actual Level of RPD After Changes in Reserve Requirements
11% growth for Apr
J F M A
197411
CHART 3
MONEY MARKET CONDITIONS AND INTEREST RATES
MONEY MARKET CONDITIONS PER CENT- 12
10
-8
- 6
4
INTEREST RATES Short-term
1973 1974
PERCENT-I 13
1973 19741973 1974
STRICTLY CONFIDENTIAL
MAY 17, 1974BANK RESERVES(ACTUAL AND CURRENT PROJECTIONS)
II AGGREGATE RESERVES I REQUIRED RESERVESRESERVES AVAILABLE FOR I------------ -------- -----------------
PRIVATE NOMBANK DEPOSITS II SEASONALLY ADJUSTEDII---------------------------------------------------- -------
- ---- ----------- TOTAL NONBORROWED I PRIVATE OTHER CD'S AND GOV'T ANDPERIO I SEAS ADJ I NON SEAS ADJ II RESERVES RESERVES I DEMAND TIME DEP NON DEP INTERBANK
I (1) I (2) 11 (3) (4) I (5) (6) (7) 18)
MONTHLY LEVELS-$MILLIONSI
1974--FEB IMAR. IAPR.MAY
ANNUAL RATES OF CHANGE-------------- I
QUARTERLY:
1973--4TH OTR.
1974--1ST QTR.2ND QTR.
MONTHLY:1974--FEB.
MAR.APR.MAY
APR.-MAY
WEEKLY LEVELS-$MILLIONS
MAR. 6132027
APR. 3101724
MAY 18
15
32,79133,11733.669
134,296)
1.4
6.2S19.7)
-0.311.920.0
( 22.3)
(21.4)
33,13432,93833,21633,115
33,24033,11733,79433,773
34,25834,15134,169
NOTE: DATA SHOWN IN PARENTHESES ARE CURRENT PROJECTIONS. AT THE FOMC MEETING OF APRIL 16, 1974THE COMMITTEE AGREED ON A RPD RANGE OF 6 TO 11 PERCENT FOR THE APRIL-HAY PERIOD.
8,6018,6548,651
I 8,715)
3,9674,0374,416
1 5,024)
2,3161,8312,245
( 2,261)
12.7
9.2I 3.7)
32,87532,88833,751
(34,112)
32,81032,59433,03032,979
33,11632,84933,83534,042
34,68234,30434,094
35910834,94935,914
(36,557)
6.1
1.7( 19.5
-24.8-5.433.1
( 21.5)
( 27.61
34,66334,79235,23334,808
35,39835,04036,16136,057
36,73736,38536,633
33,91633963434,178
(34,502)
13.4
1.5( 2.6)
-30.4-10.019.4
S11.4)
I 15.51
33,75133,80933,75033,095
33,89533,84634,34534,119
34,58034,76834,833
20,03920,29120,411120,350)
5.8
1.31 2.5)
-15.715.17.1
( -3.6)
( 1.71
20,35120,14020,47020,229
20,26320,21820,46820,359
20,70520,38520,240
10.77.4
-0.48.9)
4.2)
8,6478,6638,65989649
8,6528,6338,6288,657
8,6938,6988,727
4,01.74,0194,0074,068
4,0994,2044,3694,566
4,7024,8554.958
1,5301,8542,0171,693
2,1581,9232,3672.284
2,4782,2342,463
TABLE 1
STRICTLY CONFIDENTIAL
MONETARY AGGREGATES(ACTUAL AND CURRENT PROJECTIONS, SEASONALLY ADJUSTED)
MAY 17, 1974
S MONEY SUPPLY I ADJUSTED II U.S. I TIME AND SAVINGS DEPOSITS I NONDEPOSITI NARROW I BROAD I CREDIT II GOVT. I I OTHER I I SOURCES OF
PERIOD I (MI) I (M2) I PROXY II DEPOSITS I TOTAL I THAN CD S I CD S I FUNDS
(11 I (21 (31) I (41 i I 16) I 17) I 18)I
MONTHLY LEVELS-tBILLIONSI
1974--FEB.MAR.APR.MAY
PERCENT ANNUAL GROWTH
QUARTERLY
1973--4TH OTR.
1974--LST QTR I2ND QTR. I
MONTHLY
1974--FEB.MAR.APR.MAY
APR.-NAY
WEEKLY LEVELS-SBILL IONS---------------- I
MAR. 6132027
APR. 3101724
MAY 18 P
15 PE)
273.7276.2278.1
(279.2)
8.9
7.1( 6.7)
12.911.08.3
1 4.7)
f 6.5)
277.0276.1275.9275.5
277.4277.6280.0277.7
276.9278.4278.9
581.9586.2590.21592.8)
11.0
9.9t 7.0)
13.68.98.2
1 5.3)
( 6.8)
586.6585.8586.1585.7
588.0589.2592.2590.1
589.8591.1592.4
454.8459.1471.3
(477.4)
3.3
8.5(20.7)
1.311.331.9
(15.5)
(23.9)
458.2456.4459.3460.2
466.3468.4472.9471.8
473.7476.4476.4
3.03.74.6
( 3.9)
4.23.04.03.6
4.85.05.04.0
4.45.33.4
374.8377.7387.4
(394.6)
6.1
15.6(23.5)
15.29.3
30.8(22.3)
(26.8)
375.5376.5377.3379.0
382.0385.4387.0389.2
390.8392.3394,1
308.2310.0312.1
(313.7)
12.6
12.5( 7.4)
14.27.08.1
( 6.2)
( 7.2)
309*6309*7310.2310.2
310.5311.5312.2312.3
312.9312.7313.5
66.667.775.3
(80.9)
65.966.867.168.8
71.473.974.876.9
77.979.680.6
7.78.69.6
(10.71
8.08.18.89.2
9.59.39.49.7
10.210.410.7
r -- ,- - U I-- -- ---- lh - - ----- ~ -C-- ~ ~-- --- YL- ~-------NOTE: DATA SHOIN IN PARENTHESES ARE CURRENT PROJECTIONS. P - PRELIMINARY
RESERVE EFFECTS OFOPEN MARKET OPERATIONS AND OTHER RESERVE FACTORS(Millions of dollars, not seasonally adjusted)
Open Market Operations 1/ Daily Average Reserve Effect 2/ in reserve categories TargetBills Coupon Agency RP's Open Market a Member Other 4/ req. res. against available res. 5/ available
& Accept. Issues Issues Net 3/ Total Operations Bank Borrowing Factors U.S.G. and interb. (6)+(7)+(8)-(9) reserves 5/(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
1/ Represents change in System's portfolio from end-of-period to end-of-period; Includes redemptions in regular bill auctions.
2/ Represents change in daily average level for preceding period.
J/ Includes matched sale-purchase transactions as well as RP's.4/ Sum of changes in vault cash, currency in circulation, Treasury operations, F.R. float, gold and foreign accounts, and other F.R. accounts.
/ Reserves to support private nonbank deposits. Target change for April and May reflects the target adopted at the April 16, 1974 FOMC meeting.Target change for previous months reflects the bluebook patterns that are consistent with target ranges that were adopted during the month.
STRICTLY CONFIDENTIAL (FR)
MAY 17, 1974TABLE 4
SECURITY DEALER POSITIONS AND BANK POSITIONSMillions of dollars
U S. Govt. SecurityDealer Positions Dealer Positions Member Bank Reserve Positions
Corporate Municipal Excess** Borrowing at FRB** Basic Reserve Deficit
Period Bills Coupot Issues Bonds Bonds Reserves Total Seasonal 8 Ney York 38 Qthers
Government security dealer trading positions are on a commtiment basis. Trading positions, wnicn exclude Treasury DiLLs rinancedagreements maturing in 16 days or more, are indicators of dealer holdings available for sale over the near-term. Other securityare debt issues still in syndicate, excluding trading positions. The basic reserve deficit is excess reserves less borrowing at
less net Federal funds purchases Weekly data are daily averages for statement weeks, except for corporate and municipal issueswhich are Friday figures.
by repurchasedealer positionsFederal Reservein syndicate
* STRICTLY CONFIDENTIAL
** Monthly averages for excess reserves and borrowings are weighted averages of statement week figures.
NOTE:
STRICTLY CONFIDENTIAL (FR)
TABLE 5
SELECTED INTEREST RATESPer cent
Short-Term Long-TermTreasury Bills 90-119 Day CD's New Issue-NYC Aaa Utility U.S Government FNMA
Conmmercial INew Recently Municipal (10-yr Constant AuctionPeriod Federal Funds 90-Day i-Year paper 60-89 Day 90-119 Day Issue Offered Bond Buyer Maturity) Yields
1973 -- HighLow
1974 -- HighLow
Apr.MayJune
JulyAug.Sept.
Oct.Nov.Dec.
1974 -- Jan.Feb.Mar.
Apr.
1974 -- Mar. 6132027
Apr. 3101724
May 18152229
Daily--May 916
NOTES:
(1)
10.845.61
11.468.81
7.127.848.49
10.4010.5010.78
10.0110.039.95
9.658.979.35
10.51
8.989.039 339.61
9.9310.0210.3610.78
11.1711.2911.46
11.5111.53p
(2) (3)
8.95 8.435.15 5.42
8.787.04
6.266.367.19
8.018.678.29
7.227.837.45
7.777.127.97
8.33
7.607.817.938.22
8.418.608.137.96
8.658.788.15
8.526.39
6.516.637.05
7.978.328.07
7.177.407.01
7.016.517.34
8.08
6.917.027.267 83
7.848.108.018.08
8.348.528.21
8.49 8.497.94 8.08
(4)
10.505.63
11.007.88
7.137.268.00
9.2610.2610.31
9.149.119.28
8.868.008.64
9.92
8.158.338.589.10
9.459.639.8010.03
10.6510.9811.00
11.0011.00
(5)
10.505.38
11.008.00
7.047.447.98
9.0910.2510.31
9.159.069.44
9.058 098.69
9.81
8.258.388.759.38
9.389.759.8810.25
10.7511.0010.88
(6)
10.755.50
11.007.88
6.757.418 13
9.1916.4010.50
9.088.919.13
8.837.978.56
9.78
8.138 258.639.25
9.259.759.8810.25
10.7511.0011.00
(7)
8.527.29
9.278.05
7.467.517.64
8.018.367.88
7.907.908.00
8.218.128.46
8.98
8.378.338.598.64
8.789.138.918.98
9.279.279.22p
(8)
8.307.26
9.148.14
7.487.507.64
7.978.227.99
7.947.948.04
8.228.238.42
8.94
8.278.378.528.67
8.758.928.959 08
9.019 .14pn.a.
(9)
5.594.99
6.005.16
5.155.155.18
5.405.485.10
5.055.185.12
5.225.205.41
5.73
5.275.325.465.57
5.735.753.615.82
5.916.006.04
(10)
7.546.42
7.666.93
6.676.856.90
7.137.407.09
6.796.736.74
6.996.967.217.51
7.087.127.287.38
7 477.487.467.58
7.63
7.667.55p
7.70n.a.
(11)
9.377.69
9.348.43
7.897.988.07
8.468.839.32
9.018.848.78
8.718.488.53
9.07
8.44
8.62
8.95
9.18
9.34
MAY 17,1974
Weekly data for columns 1 to 4 are statement week averages of daily data. Columns 5 and 6 are one-day Wednesday quotes. For Columns 7, 8 and 10the weekly date is the mid-point of the calendar week over which data are averaged. Column 9 is a one-day quote for Thursday following the end ofthe statement week. Column 11 gives FNMA auction data for the Monday preceding the end of the statement week The FNMA auction yield is theaverage yield in the hi-weekly auction for short-term forward commitments for Government underwritten mortgages.
-- ____ __ ._ -~---e -- -~-L~--------
May 17, 1974APPENDIX TABLE IRESERVES AND MONETARY VARIABLES
RESERVES MONEY STOCK MEASURES BANK CREDIT MEASURES OTHER
Available to Adjusted Total Time Thrift U.S.Support Pvt. Credit Loans and Total Other than Institution Nondeposit Gov't
period Total Nonborrowed Deposits M1 2 3 Proxy Investments Time CD's Deposits 1/ CD's Funds Demand
1/ Growth rates are based on estimated monthly average levels derived by averaging end of current month and end of previous month reported data,NOTE: Reserve Requirements on Eurodollar borrowings are included beginning October 16, 1969, and requirements on bank-related commercial paper are included beginning
October 1, 1970.p - Preliminary.
APPENDIX TABLE IIRESERVES AND MONETARY VARIABLES
(Seasonally adjusted, billions of dollars)
May 17, 1974
RESERVES MONEY STOCK MEASURES BANjC CREDIT MEASURES OTHER
Available Adjusted Total Time Thrift Non- U.S.
Non- to Support M, Credit Loans & Total Other Institution Deposits Gov't
Period Total borrowed Pvt. Deposits Total I Pvt. Dep. 3 Proxy Investments Time then, CD's Deposital ' 6dsi . Desapd
1/ Estimated monthly average levels derived by averaging end of current month and end of previous month reported data. p - Preliminary.NOTE: Reserve requirements on Eurodollar borrowings are included beginning October 16, 1969, and requirements on bank-related commercial paper are included beginning October 1,
1970. Adjusted credit proxy includes mainly total member bank deposits subject to reserve requirements, bank-related commercial paper and Eurodollar borrowings of U.S.banks. Weekly data are daily averages for statement weeks. Monthly data are daily averages except for nonbank commercial paper figures which are for last day of month.Weekly data are not available for M, total loans and investments and thrift institution deposits.
(15)
Appendix Table III
Growth Rate in Money Supply(Per cent change at an annual rate)
M1 M2
M 0 M Q-
9.0 5.3 12,3 11.0
6.2 8.2 8.9 9.8
8.7 8.2 10.8 10.8
9.9 8.4 10.6 10.2
3.8
11.5
8.9
7.1
7.0
7.5
5.6
4.5
6.7
7.0
11.1
5.3
11.0
9.9
8.8
8.8
7.9
8.9
9.9
'3
M 0
13.5 12.5
11.0 11.7
13.3 13.0
12.0 12.2
8.6
10.6
5.1
9.8
9.4
10.2
9.0
7.5
7.9
9.4
M = Annual rates of growth calculated from average levels in the final monthsof the quarters.
Q = Annual rates calculated from average levels in all three months of thequarters.
1972
1973
1974
I
II
III
IV
I
II
IVI
IVI
Appendix Table IV
Growth Rates in Money Supply for Alternatives
M1M Q
M2M Qa
M3
NSL
Alt. A
1974 IIIII
II & III Combined
6.7 8.55.6 5.76.2 7.1
7.0 8.36.6 6.66.8 7.4
Alt. B
1974 IIIII
II & III Combined
6.4 8.34.7 4.95.5 6.6
6.6 8.15.3 5.55.9 6.8
Alt. C
1974 IIIII
II & III Combined
5.9 8.23.6 3.94.7 6.0
M = Annual rates of growth calculated from averagemonths of the quarters.
Q = Annual rates calculated from average levels inmonths of the quarters.
