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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 bestpreserved 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) MONEY MARKET AND RESERVE RELATIONSHIPS Money markets Recent developments. The money market has displayed a tight atmosphere since the last meeting of the Committee, reflecting in part a much larger than seasonal increase in required reserves and also the tight reserve positions that developed at major money market banks, especially those in New York. Federal funds traded at an effective rate of 4-1/2 per cent in the two statement weeks ending December 22 and since then have traded mainly at 4-5/8 per cent. Dealer borrowing costs have also moved into a higher range. Treasury bill rates and other short-term rates have continued to move higher since their initial adjustments following the Federal Reserve actions in early December. CD rates in New York were most recently reported in a 4.75 - 4.80 per cent range for less than 3-month money, and 4.80 - 4.90 per cent for 3 to 6-month maturities. Banks reportedly are concentrating CD sales in the short-term area, where quoted yields are currently competitive with Treasury bills. The 3-month bill rate has risen to around 4.55 per cent, in response partly to the heavy January Treasury financing schedule (including $100 million of weekly additions to the 3-month bill auction), partly to the increased cost of dealer financing, and most recently to a reversal of year-end window dressing operations. These factors have operated against the background of a shift in market attitudes more firmly to the belief that interest rates generally are likely to show an upward drift over the months ahead in view of widespread forecasts of continuing economic strength. FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and, where available, weekly averages of daily figures; amounts in millions of dollars) Period 1964 - Dec. 127 278 3.81 3.84 4.18 4.47 3.01 +260c + 49 + 1965 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 115 26 303 406 395 471 3.85 3.81 3.93 3.93 3.93 3.89 3.80 3.83 4.42 4.41 4.45 4.46 4.51 4.58 4.61 4.63 4.67 4.69 4.72 4.84 2.97 3.92 4.02 4.08 4.37 4.19 4.21 4.20 4.20 4.21 4.21 4.21 4.25 4.30 4.32 4.40 4.50 - 25c +108 + 95 +140 - 21 +147 + 32 -115 - 4 + 98 + 58 +369 + 92 +181 +151 +216 - 51 +169 + 25 - 49 -+ 56 - 45 +342 +1,902 +2,023 +1,782 +2,623 + 772 +1,802 +1,414 +1,608 + 249 +2,592 + 759 +2.135 ° 4.41 4.48 4.52 4.52 4.52 4.79 4.80 4.86 4.52 - 50 -133 -159 -178 -178 -167 -144 -135 - 79 - 25 Dec. p 1965 - Dec. 1 534 526 549 552 490 4.04 4.09 4.08 4.01 4.07 4.11 3.95 418 452 4.05 4.09 4.28 3.84 534 4.12 3.50 14 - 82 478 486 218 546 4.50 4.40 4.62 4.12 4.25 4.36 4.45 4.46 -180 562 4.60 4.51 -110 - 23 75 1966 - Jan. 490 3.96 889 + 600 +1,500 + 300 - 300 + 600 + 800 -1,100 +1,800 + 700 + 200 +1,600 +1,300 + 100 +1,700 f +2,200 +2,200 +1,100 +1,400 +1,100 +1,300 +1,700 +2,500 +1,500 +2,000 +1,900 +1.400 3.37 3.37 3.40 3.40 3.40 - 100 + 900 - 100 +1,300 + 800 + + + + + 200 100 300 100 500 4.82 3.40 + 500 + 200 2.97 3.09 3.09 3.09 3.15 3.16 3.16 3.25 3.31 3.34 3.39 11/ Averages Year 1964 Year 1965 Aug. 1965 -- Nov. December 1965 1965 Annual Rates of Increase-l 107 - 93 295 467 3.47 4.05 3.55 3.95 4.19 4.27 4.44 4.58 3.09 3.16 + 4.6 + 4.2 -132 505 4.05 3.96 4.32 4.68 3.26 - 25 452 4.28 4.37 4.50 4.84 3.39 + 4.2 + 7.6 + 5.2 + 9.1 + 4.3 + 4.8 +12.8 +16.0 + 0.5 - 0.5 + 6.8 + 5.9 +17.2 +20.7 +18.8 +10.9 +12.3 +11.5 1/ Base is average for month preceding specified period. Time deposits, adjusted, at all commercial banks; differs from time deposit required reserve series in Table A-2 since latter includes only member banks. p -- Preliminary. c -- Corrected. January 7, 1966 -2- CONFIDENTIAL (FR) The rise in bill rates was moderated to a degree by the System's willingness to finance on a temporary basis a sizable portion of dealer inventories at a relatively attractive rate. Between December 23 and January 6, the System acquired, gross, slightly more than $2 billion of short-term repurchase agreements with nonbank dealers. In the four statement weeks ending January 5, 1966, reserve availability at all member banks declined from net free reserves of $75 million in the week ending December 15 to net borrowed reserves of $180 in the week of January 5, when markets were affected by the transit strike in New York. Member bank borrowings ranged from a low of $218 million in the week of December 22 to a high of $561 million in the week of January 5. For the four-week period as a whole net borrowed reserves averaged $43 million and member bank borrowings $453 million. These reserve figures were accompanied by a 3-month bill rate averaging 4.45 per cent and a Federal funds rate averaging 4.53 per cent. Prospective developments. While some earlier market uncer- tainties have passed, such as those related to the tax date and the Treasury's January financing plans, the market is still in process of adjustment. Thus, the outlook over the next three weeks for both the degree of money market pressure and the interrelationships among money market variables remains difficult to assess. In the period ahead, attitudes in both the bill and bond markets will be importantly influenced by the content of the Budget Document, to be forthcoming CONFIDENTIAL (FR) -3- in about two weeks, and by whether there is either dramatic success or failure in current peace overtures in relation to Vietnam. Bill demand has been strong recently, and some seasonal easing of bill rates often develops as January progresses. But the more than seasonal strength in public and private credit demands currently foreseen may tend to be an offsetting factor this year. More intensive efforts by banks to obtain CD money would contribute to pressures in short-term markets, while credit demands generally may serve not only to keep bill yields from showing much, if any, seasonal improvement but may also tend to keep bond yields under pressure. Taking these considerations into account, and in the absence of expectational shocks, the 3-month bill rate may fluctuate in a 4.50 to 4.60 per cent range over the next three weeks, assuming net borrowed reserves are around $100 million. A movement of the bill rate to a range consistently below the discount rate, say 4.40 4.50 per cent, is likely to require an easier reserve position, possibly a positive one given the current market outlook. Reserve flows, bank credit, and money Recent developments. Strengthened credit demands on banks brought forth a larger than anticipated expansion of required reserves in December. This reserve need was accompanied by a very rapid expan- sion in nonborrowed reserves (21 per cent annual rate for the month). Member banks borrowed more in December than in November, but this rise in borrowings appeared to be less than seasonal as total reserves for the month grew somewhat less than nonborrowed. -4- CONFIDENTIAL (FR) Prospective developments. With respect to the effect of market factors on the reserve supply in the weeks ahead, the usual seasonal inflow of currency from circulation is the principal factor supplying nonborrowed reserves. Float is projected to provide a partial offset by absorbing reserves in the latter part of January. The System will probably need to absorb reserves over the next two weeks if net borrowed reserves are kept in the neighborhood of $100 million; resumption of reserve supplying operations will be needed toward the end of January. Expansion in both nonborrowed and total reserves is likely to continue in January at fairly high rates, although reduced below December. The strength of projected expansion in aggregate reserves is partly the result of expectations of continued strong loan demands on banks and of bank participation in Government financings because of the use of tax and loan account credits. Bank credit on a daily average basis, as indicated by total member bank deposits, may increase this month at near the 11 per cent December pace. Projections of strong reserve growth also hinge on expectations that the deposit mix will continue to require more reserves per dollar of deposits, as in December. Growth of outstanding time and savings deposits in January may not be much above the reduced 11.5 per cent December pace in view of the large CD maturities scheduled for the current month. With time deposit growth continuingat this less rapid pace, and with strong loan demand on banks, private demand CONFIDENTIAL (FR) -5- deposits are likely to expand further. An offsetting influence, however, would be the greater than seasonal expansion expected for U.S. Government deposits as a result of the concentration of financing in the current month. Private demand deposits are likely to grow over the next few months somewhat above the 4.5 per cent rate for the year 1965 as a whole. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Excess reserves Period As 4 Member bank borrowines ised rev Free to V reserves date I Policy periods expected at conclusiol of each week's open market operationE 12/19/62 - 5/22/63 481 179 302 5/22/63 - 7/31/63 437 276 161 7/31/63 - 8/19/64 407 292 115 8/19/64 - 2/3/65 413 325 88 2/3/65 - 3/24/65 3/24/65 - 1/5/66 386 405 - 19 368 500 -132 405 278 127 418 432 345 338 331 356 348 382 408 355 339 427 303 406 395 471 490 534 526 549 552 490 418 452 115 26 440 298 490 193 536 495 591 338 - 96 - 40 -189 - 97 -137 - 35 -197 -101 -145 3 10 17 24 379 428 317 230 486 334 489 361 -107 94 -172 -131 -118 62 -198 -163 -118 37 -189 -177 1 8 15 22 29 1966--Jan. 5 424 455 561 232 464 382 534 478 486 218 546 562 -110 -147 20 57 4 - 82 -153 9 71 17 - 79 -180 -179 -174 Monthly (reserve weeks ending in): 1964--December 1965--January February March April May June July August September October November December p Weekly 1965--Oct. Nov. 6 Dec. p - Preliminary. As first published each week - 50 -133 -159 -178 -178 -167 -144 -135 - 79 - 25 - 23 75 14 -179 -128 -136 - 69 Table A-2 AGGREGATE RESERVES AND RESERVE RELATED MEASURES (In Retrospective Changes, Seasonally Adjusted per cent, annual rates based on monthly averages of daily figures) Total reserves Per Period Required reserves by type of deposit Demand Time Private + rvat P U. S. Gov't. Nonborrowed reserves Annually: 1963 Reserve related measures Total member Money bank deposits s uupply (credit) 1/ 3.5 +15.4 1.7 2.4 7.5 3.8 1964 4.6 +12.8 3.1 3.2 7.6 4.3 1965 4.2 +16.3 2.4 3.5 9.1 4.8 Policy Period: 8/64 - 1/65 + 4.9 + 5.2 +15.3 + 1.6 + 2.6 + 8.1 + 4.4 1/65 - 3/65 + 9.4 + 5.8 +15.1 + 6.0 + 2.5 +10.4 + 1.1 3/65 - 11/65 + 2.2 + 2.4 +15.7 + 0.6 + 3.5 + 8.0 + 5.1 December p +18.8 +20.7 +10.7 +11.0 +11.3 +10.9 +12.3 Monthly: 1964--November December + 4.8 + 1.5 + 2.8 +15.1 +14.7 +13.1 + 5.3 - 2.6 - 1.7 + 3.6 + 9.8 + 4.9 + 2.3 + 4.5 + 5.2 +10.3 + 8.5 +12.1 - 2.8 + 9.4 + 1.4 - 2.7 + + + - +21.6 +19.8 + 0.2 + 3.0 + 9.0 +14.8 - 1.3 + 7.8 + 0.7 - 7.1 -11.1 + 8.1 - 6.9 +11.0 - 2,6 - 2.0 +10.5 +11.1 + 9.7 +14.1 + 4.1 + 9.6 + 7.5 + 8.4 + 1.3 +13.5 + 3.9 +10.9 + 2.3 1965--January February March April May June July August September + 3.1 - 2.5 +18.8 October November December p I.I 1/ 1.4 6.2 5.4 8.0 1.2 +10.3 +13.5 + 9.8 +11.4 + 8.3 + 1.8 +14.5 +24.4 +13.5 +18.7 +14.4 +10.7 - 6.5 - 0.2 + 5.5 + 3.2 +20.7 I Includes all deposits subject to reserve requirements. movements in total member bank credit. p - Preliminary. * + 6.9 + 5.0 -14.0 +15.6 + 1.4 - 0.4 +14.0 + 8.4 - 1.7 +11.3 __ _ __ _ _ - 2.3 + 4.5 + 6.0 - 8.2 +13.5 + 5.2 + 1.5 +11.8 + 9.5 + 0.7 +12.3 - Movements in this aggregate correspond closely with Chart 1 MEMBER BANK RESERVES SEASONALLY ADJUSTED MONTHLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 22.5 22.0 21.5 21.0 20.5 FREE RESERVES 46** 20.0 - --.. REQUIRED TOTAL PRIVATE AGAINST DEPOSITS 19.5 19.0 16.5 S REQUIRED AGAINST -PRIVATE DEMAND DEPOSITS *mw-. 16.0 ww 15.5 15.0 S 1964 D M J 1965 S D M 1966 J Chart 2 MEMBER BANK DEPOSITS SUPPORTED SEASONALLY ADJUSTED BILLIONS MONTHLY AVERAGES OF DAILY BY REQUIRED RESERVES FIGURES OF DOLLARS 240 235 230 225 220 125 215 120 210 205 105 100 10 5 S '64 D M J 1965 S D M '66 Chart 3 MONEY SUPPLY BY COMPONENTS SEASONALLY ADJUSTED MONTHLY AND WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 170 165 160 155 135 130 125 120 40 CURRENCY 35 S 1964 D M J 1965 S D M 1966 J Table B-1 MAJOR SOURCES AND USES OF RESERVES Retrospective and Prospective (Dollar amounts in millions, based on weekly averages of daily figures) Factors affecting supply of reserves Period Federal Reserve credit (excl. float) 1/ ACTUAL Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) Year-to-date: (12/25/63 - 1/6/65 (12/23/64 - 1/5/66 Weekly: 1965--Nov. +3,125 +3,219 +3,443 +4,542 3 10 17 24 Dec. 1 8 15 22 2 9 p 1966--.an. 5p Gold Currency outside = Change in total Technical factors Required reserves Excess 3/ reserves reserves stock banks net 2/ -426 -165 -1,950 -1,847 - 76 -365 + + -1,532 -1,829 -548 +390 -164 -1,654 = Bank use of reserves + + 763 910 - 87 - 70 +1,198 +1,452 +1,319 +1,474 -121 - 22 676 840 + + - 709 256 72 380 + 1 -+ 1 - 16 - 127 - 519 - 50 - 88 -308 + 52 + 98 +353 + - 273 207 26 131 + + - 87 256 85. 44 +186 + 49 -111 - 87 + + + +. 979 441 138 325 369 247 - 35 + 1 -1 + 1 - 2 - ' - 62 - '21 - 24 - 146 + 45 -- IS -441 +126 +290 +812 -114 -A41 + + + + + 4 443 145 127 341' 278 9 + + + + + 249 114 21 670 46 ?o +194 + 31 +106 -329 +232 - A8 PROJECTED Jan. Feb. - 325 - 655 + 5 - 10 - 10 + 215 + 380 + 220 -285 + 55 -300 - 395 230 85 - 395 230 85 2 9 16 23 + + - - + 20 - 380 + 45 + 130 -330 -185 + 20 +265 + 115 70 70 40 + 115 70 70 40 2 205 505 125 345 -- 10 10 10 10 + 30 - 10 + 25 B-4. Table see details, retrospective factors included, see Table B-3. required reserves by type of deposits, see Table B-2. reverse side for explanation of projections. Mar. For For For See 12 19 26 -1-105 10 p - Preliminary. -- -- Explanation of Projections in Table B-l 1. Changes in Federal Reserve credit indicate reserves needed to offset projected changes in required reserves and factors affecting the supply of reserves. 2. Projected changes in currency outside banks reflect seasonal movements plus an allowance for growth of about $30 million per week. 3. Projected effects of Treasury operations, included in "technical factors," reflect scheduled and assumed calls in current two weeks and thereafter, maintenance of Treasury balances with Federal Reserve at $600 million. 4. Projected changes in gold stock reflect assumed outflow after January at the rate of about $50 million per month. 5. Projected changes in required reserves reflect estimated seasonal movements in private deposits, except as indicated in projections in Table B-2, and projected movements in U.S. Government demand deposits. Government deposit projections are based on anticipated Treasury receipts and expenditures and the following assumed financing operation: -a $100 million increase in the weekly Treasury bill auction from January 13 to March 31; $1.5 billion, January 19; $0.8 billion, February -15. Table B-2 CHANGES IN REQUIRED RESERVE COMPONENTS Retrospective and Prospective Seasonal and Nonseasonal Changes (Dollar amounts in millions, based on weekly averages of daily figures) Total Perioderiod required required reserves reserves Supporting U. S. Gov't. private deposits _Supporting . demand . ov'tSeasonal Total deposits Demand changes c Time Other than seasonal changes Demand Time ACTUAL Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) +763 +910 + 8 -115 +755 +1,025 +1,319 +1,467 - 10 - 59 +1,329 +1,526 --- +239 +542 +471 +467 +141 +172 + 42 + 31 +669 +635 +477 +688 - + 73 + -118 + + 45 + 16 Year-to-date: (12/25/63 - 1/6/65 (12/23/64 - 1/5/66 Weekly: 1965--Nov. 3 + 87 - 71 + 158 + 78 10 -256 -177 - 79 17 + 37 + 85 + 33 + 52 24 + 15 - 44 - 23 + 38 +101 - + 22 145 -129 - 8 - 24 + 16 1 8 15 22 29 p +249 +114 + 21 +670 + 46 +217 -121 -303 +245 +216 + + 5 p + 46 +113 +302 +226 -176 + + - 32 235 324 425 170 - 22 +112 + 15 +208 - 12 +294 8 --- 8 + 8 -+ 10 + 7 - 1 + 10 - 98 4 392 +236 + 23 +119 + 14 Jan. 12 19 26 -395 -230 - 85 -200 -220 +165 - 195 10 250 - 55 - 20 -260 - 15 + 10 + 10 -120 -- - Feb. 2 9 -115 - 70 + 40 +125 - 155 195 -165 -205 + 10 + 10 16 23 - 70 + 40 + 85 +220 - 155 180 -145 -190 - 10 + 10 2 -105 -150 + 45 + 30 + 15 Dec. 1966--Jan. -4 8 -- 2 PROJECTED Mar. 5 - 1/ Reduction in percentage reserve requirements applicable to time deposits released $780 million of reserves at the end of October 1962. Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Technical factors (net) Period Treasury operations Float e ACTUAL- Foreign deposits and gold loans Other nonmember deposits and F. R. accounts (Sign indicates effect on reserves) Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) - 76 -365 -216 -470 +149 - 84 + 88 + 11 - 97 +178 Year-to-date: (12/25/63 - 1/6/65 (12/23/64 - 1/5/66 -548 +390 -212 +350 -369 -541 - 76 - 18 +109 +599 3 10 17 24 -308 + 52 + 98 +353 + 66 -115 + 27 +148 -281 +290 + 63 +276 + 20 - 37 - 3 -- -113 - 86 + 11 - 71 1 8 15 22 29 -441 +126 +290 +812 -114 +111 + 99 + 54 - 66 + 31 -462 + 58 +193 +823 -163 + 21 + 7 - 7 + 9 + 4 -311 -111 - 38 + 50 -+ 46 + 14 - -A? . _ 6 Jan. 12 19 26 -285 + 55 -300 - 5 + 15 -- -150 + 40 -300 - 15 -- Feb. 2 9 16 23 -330 -185 + 20 +265 ----- -330 -185 + 50 +400 2 -150 - -150 Weekly: 1965--Nov. Dec. 1966--Jan. 5 A7 1; PROJECTED Mar. -115 -- -- - --- -- 30 -135 -- Table B-4 SOURCES OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Total Federal Reserve credit (excl. float) Total holdings Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) +3,125 +3,219 +3,076 +3,340 +1,659 +2,086 +1,404 +1,022 + 13 +232 + 39 - 61 + 10 - 60 Year-to-date: (12/25/63 - 1/6/65) (12/23/64 - 1/5/66) +3,443 +4,542 +3,472 +4,104 +1,941 +3,031 +1,022 + 916 +509 +157 - 21 +133 - 8 +305 1965--Oct. 6 + 790 + 776 + 776 -- -- + 31 - 13 20 27 - 131 215 426 - 71 293 194 - 101 325 132 ---- + 30 + 32 - 62 - 19 - 18 + 21 - 41 + 96 -253 Nov. 3 10 17 24 + + - 709 256 72 380 + + - 537 424 205 260 + + - 537 420 201 260 --- -+ - + 24 - 16 - 22 + 8 +148 -152 +155 -128 Dec. 1 8 15 22 29 + + + + 979 441 138 325 369 + + + 747 479 135 55 28 + + - 747 376 87 22 171 ----- -+103 - 48 - 33 +199 + + + 59 18 11 2 13 +173 - 56 + 8 -268 +328 1966--Jan. 5 + 247 + 178 - 24 -- +202 + 53 + 16 Period U. S. Government securities Ba rs' Bankers' Outright Repurchase anes areementsborrowings Other Bills M r Member bank brr n Weekly 4 4 -- 17 Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) Total Period Total reeres reserves Required reserves Nonbood Nonborrowed re reserves Total Against private deposits Demand Demand 15,131 15,133 15,152 15,170 15,184 15,191 15,264 15,265 15,288 15,349 15,453 15,422 1963--January February March April May June July August September October November December 19,620 19,700 19,752 19,770 19,858 19,848 20,020 19,898 20,025 19,923 19,994 20,240 19,504 19,547 19,575 19,608 19,667 19,630 19,718 19,565 19,663 19,573 19,640 19,960 19,212 19,224 19,284 19,292 19,359 19,452 19,557 19,431 19,592 19,518 19,587 19,775 Total 18,377 18,419 18,478 18,539 18,582 18,620 18,725 18,791 18,854 18,955 19,110 19,119 1964--January February March April May June July August September October November December 20,248 20,268 20,459 20,482 20,404 20,682 20,665 20,753 21,012 20,949 21,033 21,082 19,977 19,982 20,176 20,226 20,167 20,431 20,420 20,416 20,638 20,600 20,626 20,886 19,884 19,872 20,056 20,057 20,023 20,269 20,285 20,332 20,570 20,536 20,639 20,742 19,185 19,246 19,292 19,361 19,338 19,441 19,577 19,694 19,832 19,960 19,988 20,081 15,442 15,466 15,492 15,527 15,471 15,539 15,646 15,705 15,805 15,886 15,864 15,912 1965--January February March 21,174 21,355 21,506 21,722 21,671 21,840 21,865 21,816 21,816 20,861 20,969 21,064 21,204 21,183 21,330 21,362 20,842 20,122 20,166 20,294 20,409 20,258 20,506 20,579 15,878 15,852 15,943 16,009 15,822 16,028 April May June July August September October November December p p - Preliminary. 21,872 21,827 22,169 21,247 21,243 21,341 21,399 21,768 20,915 21,119 21,317 21,298 21,473 21,538 21,384 21,420 21,532 21,459 21,794 20,665 20,903 21,090 21,124 21,321 16,047 16,041 16,227 16,341 16,318 16,472 C rt Reference Table C-2 DEPOSITS SUPPORTED BY REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) Period Total member bank deposits (credit /) e eposits 81,146 82,139 83,139 84,232 84,961 85,732 86,528 88,145 1963--January February March April May June July August September October November December 189,012 190,044 191,115 192,013 193,134 194,259 195,597 196,513 197,717 198,339 200,130 201,505 1964--January February March April May June July August September October November December 202,981 203,759 205,068 206,176 206,613 208,669 209,312 211,506 212,906 214,109 215,849 216,738 94,495 95,011 95,852 96,677 97,542 98,273 99,725 100,670 101,850 103,090 104,215 1965--January February March April May June July August September October 218,640 220,663 222,445 225,0'68 225,840 227,642 229,056 230,664 230,913 233,505 234,264 236,399 106,107 107,843 108,778 109,996 110,898 111,955 113,306 115,594 116,900 118,718 120,152 121,231 November December p 1/ 2/ 89,139 90,159 91,428 92,426 93,563 U. S. Gov't. demand deposits 5,565 5,587 5,525 5,210 5,509 5,816 5,865 5,158 5,212 4,399 4,219 4,804 5,011 4,695 5,308 5,337 5,327 6,061 5,256 5,592 5,368 4,849 5,500 4,932 5,180 5,642 5,872 6,829 7,967 7,315 7,253 6,614 4,296 4,298 3,785 3,793 Private demand deosits 2 102,301 102,318 102,451 102,571 102,664 102,711 103,204 103,210 103,366 103,781 104,483 104,275 104,407 104,569 104,749 104,987 104,609 105,066 105,783 106,189 106,868 107,410 107,259 107,591 107,353 107,178 107,795 108,243 106,975 108,372 108,497 108,456 109,717 110,489 110,327 111,375 Includes all deposits subject to reserve requirements-- i.e., the total of time, private demand,and U.S. Government demand deposits. Movements in this aggregate correspond closely with movements in total member bank credit. Private demand deposits include demand deposits of individuals, partnerships and corporations and net interbank balances. p - Preliminary. Chart Reference Table C-3 MONEY SUPPLY BY COMPONENTS Seasonally Adjusted (Dollar amounts in billions, based on monthly averages of daily figures) Period Money Supply Deman deposits 1/ Currency 1964--September October November December 158.2 158.8 159.1 159.7 124.3 124.8 124.8 124.4 33.9 34.0 34.2 34.2 1965--January February March April May June July August September October November December p 160.0 159.7 160.3 161.1 160.0 161.8 162.5 162.7 164.3 165.6 165.7 167.4 125.5 124.1 125.6 126.4 125.1 126.8 127.3 127.3 128.7 129.7 129.6 131.1 34.5 34.7 34.7 34.7 34.9 35.0 35.2 35.4 35.6 35.9 36.1 36.3 6 13 20 27 165.8 165.5 165.4 165.5 129.9 129.6 129.6 129.5 35.9 35.9 35.9 36.0 Nov. 3 10 17 24 165.9 165.8 165.6 165.8 129.9 129.7 129.4 129.6 36.1 36.0 36.1 36.2 Dec. 1 8 15 22 29 p 165.7 166.6 166.5 167.8 168.6 129.6 130.3 130.2 131.5 132.3 36.2 36.3 36.3 36.4 36.3 1966--Jan. 5 e 169.1 132.7 36.3 Weekly: 1965--Oct. / _1/Includes (1) demand deposits at all commercial banks, other than those due to domestic commercial banks and the U.S. Government, less cash items in process of collection and Federal Reserve float; and (2) foreign demand balances at Federal Reserve Banks. 2/ Includes currency outside the Treasury, the Federal Reserve, and the vaults of all commercial banks. p - Preliminary. e - Estimated.
@FedFRASER