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Meeting of Federal Open Market Committee
January 14, 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, January 14, 1969, at 9:30 a.m.
PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.

Martin, Chairman
Brimmer
Daane
Galusha
Hickman
Kimbrel
Maisel
Mitchell
Morris
Robertson
Sherrill
Treiber, Alternate for Mr. Hayes

Messrs. Bopp, Clay, Coldwell, and Scanlon,
Alternate Members of the Federal Open
Market Committee
Messrs. Heflin, Francis, and Swan, Presidents
of the Federal Reserve Banks of Richmond,
St. Louis, and San Francisco, respectively
Mr. Holland, Secretary
Mr. Sherman, Assistant Secretary
Mr. Kenyon, Assistant Secretary
Mr. Broida, Assistant Secretary
Mr. Hackley, General Counsel
Mr. Brill, Economist
Messrs. Axilrod, Hersey, Kareken, Link, Mann,
Partee, Solomon, and Taylor, Associate
Economists
Mr. Holmes, Manager, System Open Market
Account
Mr. Coombs, Special Manager, System Open
Market Account

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1/14/69

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
Messrs. Eisenmenger, Eastburn, Snellings,
Baughman, Jones, Tow, Green, and Craven,
Vice Presidents of the Federal Reserve
Banks of Boston, Philadelphia, Richmond,
Chicago, St. Louis, Kansas City, Dallas,
and San Francisco, respectively
Mr. Meek, Assistant Vice President, Federal
Reserve Bank of New York
By unanimous vote, the minutes of actions taken at the meeting
of the Federal Open Market Committee held on December 17, 1968, were
approved.

The memorandum of discussion for the meeting of the Federal
Open Market Committee held on December 17, 1968, was accepted.
The reports of audit of the System Open Market Account and of
foreign currency transactions, made by the Board's Division of Federal
Reserve Bank Operations as at the close of business on October 18, 1968,
and submitted by Mr. Schaeffer, Chief Federal Reserve Examiner, were
accepted.
By unanimous vote, the System open market transactions in
foreign currencies during the period December 17, 1968, through
January 13, 1969, were approved, ratified, and confirmed.

1/14/69
By unanimous vote, the open market transactions in Government
securities, agency obligations, and bankers' acceptances during the
period December 17, 1968, through January 13, 1969, were approved,
ratified, and confirmed.
With Mr. Morris dissenting, the Federal Reserve Bank was autho
rized 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 expansion in real economic activity has been mod
erating, with slower growth in consumer outlays but
higher rates of business inventory accumulation and
capital expenditures. Upward pressures on prices and
costs, however, are persisting. Since the mid-December
firming of monetary policy, most interest rates have
risen further and, with the outstanding volume of large
denomination CD's declining sharply, bank credit expansion
has slowed. Growth in the money supply moderated somewhat
on average in December from its rapid November pace. The
U.S. foreign trade surplus remains very small but near the
end of the year unusual capital inflows had a markedly
favorable effect on the over-all balance of payments. 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 encour
aging a more sustainable rate of economic growth and attain
ing 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 the prevailing firm conditions in
money and short-term credit markets; provided, however, that
operations shall be modified, to the extent permitted by the
forthcoming Treasury refunding, if bank credit expansion
appears to be deviating significantly from current projections.

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It was agreed that the next meeting of the Committee would
be held on Tuesday, February 4, 1969, at 9:30 a.m.
The meeting adjourned.

Secretary


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102