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CONFIDENTIAL (FR)
Matters for consideration at the meeting of the Federal Open Market
Committee to be held on Tuesday, March 1, 1966, at 9:30 a.m.

Advices of the election of the following members and alternate members
of the Federal Open Market Committee for the year commencing March 1,
1966, have been received by the Secretary and it appears that they will
be legally qualified to serve after they have executed their Oaths of
Office:

1.

Member

Alternate Member

Alfred Hayes
Karl R. Bopp
W. Braddock Hickman
George H. Clay
Watrous H. Irons

William F. Treiber
Edward A. Wayne
Charles J. Scanlon
Eliot J. Swan
Darryl R. Francis

Election of officers to serve until the election of their successors
at the first meeting of the Committee after February 28, 1967:
Chairman
Vice Chairman
Secretary and Assistant Secretaries
General Counsel and Assistant General Counsel
Economist and Associate Economists

2.

Selection of a Federal Reserve Bank to execute transactions for the
System Open Market Account.

3.

Selection of (a) Manager of the System Open Market Account, and
(b) Special Manager for foreign currency operations for such Account.

4.

Approval of the minutes of the meeting of the Federal Open Market
Committee held on February 8, 1966.

5.

Review of continuing authorities.
a.

Continuing authority directive to the Federal Reserve Bank of
New York with regard to transactions in U.S. Government securities and bankers' acceptances.

(Copy attached.)

b. Authorization and guidelines regarding open market transactions
in foreign currencies, and continuing authority directive for
such operations. (Copies attached.)
c. Procedure for allocation of securities in System Open Market
Account. (Description attached of current procedure, as last
revised on March 2, 1965.)
d. Distribution of periodic reports prepared by the Federal Reserve Bank of New York for the Federal Open Market Committee.
(Copy attached of proposed authorization for distribution of
such reports.)
e. Authority for Chairman to appoint a Federal Reserve Bank as
agent to operate the System Account temporarily in case the
Federal Reserve Bank of New York is unable to function.
(Note: This authorization was first given in March 1951,
The report of the Subcommittee on Defense Planning, approved
by the Committee at its meeting on January 10, 1956, contained
the recommendation that this authorization be reaffirmed, and
that has been done at the first meeting in March of each year
since.)
f.
Resolution to provide for the continued operation of the Federal
& Open Market Committee during an emergency; and Resolution authorg. izing certain actions by the Federal Reserve Banks during an
emergency. (Copies attached. These resolutions were first
adopted on March 6, 1956, pursuant to the approval by the Committee on January 10, 1956, of the report of the Subcommittee
on Defense Planning dated January 9, 1956. These were renewed
in the form attached on March 2, 1965.)
h. Authorization for System personnel assigned to the Office of
Emergency Planning, Special Facilities Branch, to have access
to the foregoing resolutions relating to emergency operations.
(Note: At the meeting on December 16, 1958, the Committee
authorized System personnel assigned to the Office of Emergency Planning, Special Facilities Branch, on a rotating basis
to have access to the resolutions referred to under f. and g.
above. This authorization was reaffirmed on March 2, 1965,)
i. Resolution requesting a report of each examination of the
System Open Market Account by the Board's examining force.
(Note: The resolution requesting the Board of Governors

(continued)
i.

to cause its examining force in the future to furnish the
Secretary of the Open Market Committee a report of each
examination of the System Open Market Account was adopted
on June 21, 1939. Excerpts from the minutes showing the
origin of this resolution are attached. The procedure
then established was reviewed at the meeting on March 2,
1965, at which time it was continued without change.)

6.

Review of procedure for granting access to minutes and other records
of the Federal Open Market Committee. (Memorandum attached.)

7.

Report by the Special Manager for foreign currency operations on such
operations since the meeting of the Federal Open Market Committee on
February 8, 1966; action with respect to transactions during such
period; and consideration of recommendations of the Special Manager.

8.

Report by the Manager of the System Open Market Account on open
market operations since the meeting of the Federal Open Market
Committee on February 8, 1966; and action with respect to transactions during such period.

9.

Reports on economic and financial developments. (Chart show)

10.

Discussion of factors bearing on monetary and credit policy; and
derivation of consensus regarding open market operations in the
forthcoming period.

11.

Current economic policy directive to the Federal Reserve Bank of
New York. (Copy of February 8, 1966, directive attached.)

12.

Confirmation of date for next meeting (March 22, 1966).