The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Meeting of Federal Open Market Committee April 1, 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, April 1, 1969, at 9:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman 1 / Bopp Brimmer Clay Coldwell Daane Maisel Mitchell Robertson Scanlon Sherrill Treiber, Alternate for Mr. Hayes Messrs. Francis, Hickman, and Swan, Alternate Members of the Federal Open Market Committee Messrs. Morris, Kimbrel, and Galusha, Presidents of the Federal Reserve Banks of Boston, Atlanta, and Minneapolis, respectively Mr. Holland, Secretary Mr. Broida, Deputy Secretary Messrs. Kenyon and Molony, Assistant Secretaries Mr. Hackley, General Counsel Mr. Brill, Economist Messrs. Axilrod, Baughman, Eastburn, Green, Hersey, Link, Partee, Reynolds, Solomon, and Tow, Associate Economists Mr. Holmes, Manager, System Open Market Account Mr. Coombs, Special Manager, System Open Market Account 1/ Entered the meeting at the point indicated. 4/1/69 Mr. Sherman, Consultant, Board of Governors Mr. Cardon, Assistant to the Board of Governors Messrs. Coyne and Nichols, Special Assistants to the Board of Governors Mr. Williams, Adviser, Division of Research and Statistics, Board of Governors Mr. Wernick, Associate Adviser, Division of Research and Statistics, Board of Governors Mr. Keir, Assistant Adviser, Division of Research and Statistics, Board of Governors Mr. Bernard, Special Assistant, Office of the Secretary, Board of Governors Miss Eaton, Open Market Secretariat Assistant, Office of the Secretary, Board of Governors Mr. Black, First Vice President, Federal Reserve Bank of Richmond Messrs. Parthemos, Jones, and Craven, Senior Vice Presidents of the Federal Reserve Banks of Richmond, St. Louis, and San Francisco, respectively Mr. Brandt, Vice President of the Federal Reserve Bank of Atlanta Mr. Kareken, Economic Adviser, Federal Reserve Bank of Minneapolis Miss Beekel, Assistant Vice President and Economist, Federal Reserve Bank of Cleveland Mr. Meek, Assistant Vice President, Federal Reserve Bank of New York Mr. Anderson, Financial Economist, Federal Reserve Bank of Boston By unanimous vote, Mr. Robertson was elected Acting Chairman for the period until Chairman Martin entered the meeting. By unanimous vote, the minutes of actions taken at the meeting of the Federal Open Market Committee held on March 4, 1969, were approved. -3 4/1/69 The memorandum of discussion for the meeting of the Federal Open Market Committee held on March 4, 1969, was accepted. Chairman Martin entered the room and assumed the chair. By unanimous vote, the System open market transactions in foreign currencies during the period March 4 through 31, 1969, were approved, ratified, and confirmed. By unanimous vote, the open market transactions in Government securities, agency obligations, and bankers' acceptances during the period March 4 through 31, 1969, were approved, ratified, and confirmed. With Messrs. Coldwell and Maisel dissenting, 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 suggests that, while expansion in real economic activity has moderated somewhat further, current and prospective activity now appears stronger than earlier projections had indicated. Substantial upward pressures on prices and costs are persisting. Most long-term interest rates have risen further on balance in recent weeks, but movements in short-term rates have been mixed. In the first quarter of the year bank credit changed little on average, as investments contracted while loans expanded further. In March the outstanding volume of large denomination CD's continued to decline sharply; inflows of other time and savings deposits were moderate; and growth in the money supply remained at a sharply reduced rate. It appears that a sizable deficit reemerged in 4/1/69 the U.S. balance of payments on the liquidity basis in the first quarter but that the balance on the official settlements basis remained in surplus as a result of further large inflows of Euro-dollars. In this situation, 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 a more sustainable rate of 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 firm conditions in money and short-term credit markets, taking account of the effects of other possible monetary policy action; 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 Committee would be held on Tuesday, April 29, 1969, at 9:30 a.m. The meeting adjourned. Secretary
@FedFRASER