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Meeting of the Federal Open Market Committee
March 29-30, 1982
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., beginning on Monday, March 29, 1982, at 4:00 p.m. and
continuing on Tuesday, March 30, 1982, at 9:45 a.m.
PRESENT:
Mr. Volcker, Chairman
Mr. Solomon, 1/ Vice Chairman
Mr. Balles
Mr. Black
Mr. Ford
Mr. Gramley
Mr. Partee
Mr. Rice
Mrs. Teeters
Mr. Wallich
Mr. Winn
Messrs. Guffey, Keehn, Morris, and Roos, Alternate Members of
the Federal Open Market Committee
Mr. Martin, 2/ Vice Chairman designate, Board of Governors
Messrs. Boehne, Boykin, and Corrigan, Presidents of the Federal
Reserve Banks of Philadelphia, Dallas, and Minneapolis,
respectively
Mr. Axilrod, Staff Director
Mr. Altmann, Secretary
Mr. Bernard, Assistant Secretary
Mrs. Steele, Deputy Assistant Secretary
Mr. Bradfield, General Counsel
Mr. Mannion, 3/ Assistant General Counsel
Mr. Kichline, Economist
1/
Entered the meeting following the approval of the minutes of actions taken
at the meeting on February 1-2, 1982.
2/
Entered the meeting on Tuesday prior to the action to adopt the domestic
policy directive.
3/
Attended Tuesday session only.
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Messrs. J. Davis, R. Davis, Ettin, Keran, Koch,
Parthemos, Prell, Siegman, Truman, and Ziesel,
Associate Economists
Mr. Sternlight, Manager for Domestic Operations,
System Open Market Account
Mr. Cross, Manager for Foreign Operations, System
Open Market Account
Mr. Coyne, Assistant to the Board of Governors
Mr. Gemmill, Associate Director, Division of
International Finance, Board of Governors
Mr. Kohn, Senior Deputy Associate Director, Division of
Research and Statistics, Board of Governors
Mr. Lindsey, Assistant Director, Division of Research
and Statistics, Board of Governors
Mrs. Deck, Staff Assistant, Open Market Secretariat,
Board of Governors
Mr. MacDonald, First Vice President, Federal Reserve Bank
of Cleveland
Messrs. Balbach, Burns, T. Davis, Eisenmenger, Mullineaux,
Scheld, and Stern, Senior Vice Presidents, Federal
Reserve Banks of St. Louis, Dallas, Kansas City,
Boston, Philadelphia, Chicago, and Minneapolis,
respectively
Messrs. Sandberg, and Soss, Vice Presidents, Federal
Reserve Bank of New York
In the agenda for this meeting, it was reported that advices of the
election of the following members and alternate members of the Federal Open
Market Committee for the year commencing March 1, 1982, had been received by
the Secretary and the named individuals had executed their oaths of office.
The elected members and alternate members were as follows:
Robert P. Black, President of the Federal Reserve Bank of Richmond, with
Frank E. Morris, President of the Federal Reserve Bank of Boston, as
alternate;
Anthony M. Solomon, President of the Federal Reserve Bank of New York, with
Thomas M. Timlen, First Vice President of the Federal Reserve Bank of
New York, as alternate;
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Willis J. Winn, President of the Federal Reserve Bank of Cleveland, with
Silas Keehn, President of the Federal Reserve Bank of Chicago, as
alternate;
William F. Ford, President of the Federal Reserve Bank of Atlanta, with
Lawrence K. Roos, President of the Federal Reserve Bank of St. Louis,
as alternate;
John J. Balles, President of the Federal Reserve Bank of San Francisco, with
Roger Guffey, President of the Federal Reserve Bank of Kansas City,
as alternate.
By unanimous vote, the following officers of the Federal Open Market
Committee were elected to serve until the election of their successors at the
first meeting of the Committee after February 28, 1983, with the understanding
that in the event of the discontinuance of their official connection with the
Board of Governors or with a Federal Reserve Bank, as the case might be, they
would cease to have any official connection with the Federal Open Market
Committee:
Paul A. Volcker
Anthony M. Solomon
Chairman
Vice Chairman
Stephen H. Axilrod
Murray Altmann
Normand R. V. Bernard
Nancy M. Steele
Michael Bradfield
James H. Oltman
Robert E. Mannion
James L. Kichline
Staff Director
Secretary
Assistant Secretary
Deputy Assistant Secretary
General Counsel
Deputy General Counsel
Assistant General Counsel
Economist
John M. Davis, Richard G. Davis,
Edward C. Ettin, Michael W. Keran,
Donald L. Koch, James Parthemos,
Michael J. Prell, Charles J. Siegman,
Edwin M. Truman, Joseph S. Zeisel
Associate Economists
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3/29-30/82
By unanimous vote, the Federal Reserve Bank of New York was selected
to execute transactions for the System Open Market Account until the adjourn
ment of the first meeting of the Federal Open Market Committee after
February 28, 1983.
By unanimous vote, Peter D. Sternlight and Sam Y. Cross were selected
to serve at the pleasure of the Committee in the capacities of Manager for
Domestic Operations, System Open Market Account, and Manager for Foreign
Operations, System Open Market Account, respectively, on the understanding
that their selection was subject to their being satisfactory to the Federal
Reserve Bank of New York.
Secretary's note: Advice was subsequently received that
the selections indicated above were satisfactory to the
Federal Reserve Bank of New York.
Consideration was then given to the continuing authorizations of the
Committee, in accordance with the customary practice of reviewing such matters
at the first meeting in March of every year.
Secretary's note: On February 17, 1982, certain continuing
authorizations of the Committee listed below, had been dis
tributed by the Secretary with the advice that, in accordance
with procedures approved by the Committee, they were being
called to the Committee's attention before the March organi
zation meeting to give members an opportunity to raise any
questions they had concerning them. Members were asked to
so indicate if they wished to have any of the authorizations
in question placed on the agenda for consideration at this
meeting, and no such requests were received.
The authorizations in question were as follows:
1. Procedures for allocation of securities in the
System Open Market Account.
2. List of Treasury Department officials to whom weekly
reports on open market operations may be sent.
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3/29-30/82
3.
Authority for the Chairman to appoint a Federal
Reserve Bank as agent to operate the System Account
in case the New York Bank is unable to function.
4.
Resolutions providing for continued operations of the
Committee and for certain actions by the Reserve Banks
during an emergency.
5.
Resolution relating to examinations of the System Open
Market Account.
6.
Guidelines for the conduct of System operations in
Federal agency issues.
7.
Regulation relating to Open Market Operations of Federal
Reserve Banks.
8.
Rules of Organization, Rules Regarding Availability of
Information, and Rules of Procedure.
It was agreed that the authorization for the lending of Government
securities from the System Open Market Account, contained in paragraph 3 of
the Authorization for Domestic Open Market Operations, should be retained.
By unanimous vote, the Authorization for Domestic Open Market
Operations shown below was reaffirmed:
AUTHORIZATION FOR DOMESTIC OPEN MARKET OPERATIONS
1. The Federal Open Market Committee authorizes and directs the Federal
Reserve Bank of New York, to the extent necessary to carry out the most
recent domestic policy directive adopted at a meeting of the Committee:
(a) To buy or sell U. S. Government securities, including securities
of the Federal Financing Bank, and securities that are direct obligations
of, or fully guaranteed as to principal and interest by, any agency of
the United States in the open market, from or to securities dealers and
foreign and international accounts maintained at the Federal Reserve Bank
of New York, on a cash, regular, or deferred delivery basis, for the System
Open Market Account at market prices, and, for such Account, to exchange
maturing U. S. Government and Federal agency securities with the Treasury or
the individual agencies or to allow them to mature without replacement;
provided that the aggregate amount of U. S. Government and Federal agency
securities held in such Account (including forward commitments) at the
close of business on the day of a meeting of the Committee at which action
is taken with respect to a domestic policy directive shall not be
3/29-30/82
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increased or decreased by more than $3.0 billion during the period com
mencing with the opening of business on the day following such meeting and
ending with the close of business on the day of the next such meeting;
(b) When appropriate, to buy or sell in the open market, from or
to acceptance dealers and foreign accounts maintained at the Federal
Reserve Bank of New York, on a cash, regular, or deferred delivery basis,
for the account of the Federal Reserve Bank of New York at market discount
rates, prime bankers acceptances with maturities of up to nine months at
the time of acceptance that (1) arise out of the current shipment of
goods between countries or within the United States, or (2) arise out
of the storage within the United States of goods under contract of sale or
expected to move into the channels of trade within a reasonable time and
that are secured throughout their life by a warehouse receipt or similar
document conveying title to the underlying goods; provided that the
aggregate amount of bankers acceptances held at any one time shall not
exceed $100 million;
(c) To buy U. S. Government securities, obligations that are direct
obligations of, or fully guaranteed as to principal and interest by, any
agency of the United States, and prime bankers acceptances of the types
authorized for purchase under 1(b) above, from dealers for the account of
the Federal Reserve Bank of New York under agreements for repurchase of
such securities, obligations, or acceptances in 15 calendar days or less,
at rates that, unless otherwise expressly authorized by the Committee,
shall be determined by competitive bidding, after applying reasonable
limitations on the volume of agreements with individual dealers; provided
that in the event Government securities or agency issues covered by any
such agreement are not repurchased by the dealer pursuant to the agreement
or a renewal thereof, they shall be sold in the market or transferred to the
System Open Market Account; and provided further that in the event bankers
acceptances covered by any such agreement are not repurchased by the seller,
they shall continue to be held by the Federal Reserve Bank or shall be sold
in the open market.
2. The Federal Open Market Committee authorizes and directs the Federal
Reserve Bank of New York (or, under special circumstances, such as when the
New York Reserve Bank is closed, any other Federal Reserve Bank) (a) to
lend to the Treasury such amounts of securities held in the System Open
Market Account as may be necessary from time to time for the temporary
accommodation of the Treasury, under such conditions as the Committee may
specify; and (b) to purchase directly from the Treasury for renewable
periods not to exceed thirty days, when authorized by the Board of
Governors of the Federal Reserve System pursuant to an affirmative vote of
not less than five members, for its own account (with discretion, in cases
where it seems desirable, to issue participations to one or more Federal
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3/29-30/82
Reserve Banks) such amounts of special short-term certificates of indebted
ness as may be necessary from time to time for the temporary accommodation
of the Treasury, provided that the rate charged on such certificates shall
be a rate of 1/4 of 1 percent below the discount rate of the Federal Reserve
Bank of New York at the time of such purchases and provided that the total
amount of such certificates held at any one time by the Federal Reserve
Banks shall not exceed $2 billion.
3. In order to ensure the effective conduct of open market operations,
the Federal Open Market Committee authorizes and directs the Federal
Reserve Banks to lend U. S. Government securities held in the System Open
Market Account to Government securities dealers and to banks participating
in Government securities clearing arrangements conducted through a Federal
Reserve Bank, under such instructions as the Committee may specify from
time to time.
4. In order to ensure the effective conduct of open market operations,
while assisting in the provision of short-term investments for foreign and
international accounts maintained at the Federal Reserve Bank of New York,
the Federal Open Market Committee authorizes and directs the Federal Reserve
Bank of New York (a) for System Open Market Account, to sell U. S. Govern
ment securities to such foreign and international accounts on the bases
set forth in paragraph 1(a) under agreements providing for the resale by
such accounts of those securities within 15 calendar days on terms com
parable to those available on such transactions in the market; and (b)
for New York Bank account, when appropriate, to undertake with dealers,
subject to the conditions imposed on purchases and sales of securities in
paragraph 1(c), repurchase agreements in U. S. Government and agency
securities, and to arrange corresponding sale and repurchase agreements
between its own account and foreign and international accounts maintained
at the Bank. Transactions undertaken with such accounts under the pro
visions of this paragraph may provide for a service fee when appropriate.
By unanimous vote the Authorization for Foreign Currency Operations
shown below was reaffirmed:
AUTHORIZATION FOR FOREIGN CURRENCY OPERATIONS
1. The Federal Open Market Committee authorizes and directs the Federal
Reserve Bank of New York, for System Open Market Account, to the extent
necessary to carry out the Committee's foreign currency directive and
express authorizations by the Committee pursuant thereto, and in conformity
with such procedural instructions as the Committee may issue from time to
time:
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A. To purchase and sell the following foreign currencies in the form
of cable transfers through spot or foward transactions on the open market at
home and abroad, including transactions with the U. S. Treasury, with the
U. S. Exchange Stabilization Fund established by Section 10 of the Gold
Reserve Act of 1934, with foreign monetary authorities, with the Bank
for International Settlements, and with other international financial
institutions:
Austrian schillings
Belgian francs
Canadian dollars
Danish kroner
Pounds sterling
French francs
German marks
Italian lire
Japanese yen
Mexican pesos
Netherlands guilders
Norwegian kroner
Swedish kronor
Swiss francs
B. To hold balances of, and to have outstanding forward contracts to
receive or to deliver, the foreign currencies listed in paragraph A above.
C. To draw foreign currencies and to permit foreign banks to draw dollars
under the reciprocal currency arrangements listed in paragraph 2 below,
provided that drawings by either party to any such arrangement shall be
fully liquidated within 12 months after any amount outstanding at that time
was first drawn, unless the Committee, because of exceptional circumstances,
specifically authorizes a delay.
D. To maintain an overall open position in all foreign currencies not
exceeding $8.0 billion. For this purpose, the overall open position in all
foreign currencies is defined as the sum (disregarding signs) of net posi
tions in individual currencies. The net position in a single foreign
currency is defined as holdings of balances in that currency, plus out
standing contracts for future receipt, minus outstanding contracts for
future delivery of that currency, i.e., as the sum of these elements
with due regard to sign.
2. The Federal Open Market Committee directs the Federal Reserve Bank of
New York to maintain reciprocal currency arrangements ("swap" arrangements)
for the System Open Market Account for periods up to a maximum of 12 months
with the following foreign banks, which are among those designated by the
Board of Governors of the Federal Reserve System under Section 214.5 of
Regulation N, Relations with Foreign Banks and Bankers, and with the approval
of the Committee to renew such arrangements on maturity:
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- 9 Amount of arrangement
(millions of dollars
Foreign bank
equivalent)
Austrian National Bank
National Bank of Belgium
250
1,000
Bank of Canada
National Bank of Denmark
Bank of England
Bank of France
German Federal Bank
Bank of Italy
Bank of Japan
Bank of Mexico
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
Bank for International Settlements:
Dollars against Swiss francs
Dollars against authorized European
currencies other than Swiss francs
2,000
250
3,000
2,000
6,000
3,000
5,000
700
500
250
300
4,000
600
1,250
Any changes in the terms of existing swap arrangements, and the proposed
terms of any new arrangements that may be authorized, shall be referred
for review and approval to the Committee.
3. All transactions in foreign currencies undertaken under paragraph
1(A) above shall, unless otherwise expressly authorized by the Committee,
be at prevailing market rates. For the purpose of providing an investment
return on System holdings of foreign currencies, or for the purpose of
adjusting interest rates paid or received in connection with swap drawings,
transactions with foreign central banks may be undertaken at non-market
exchange rates.
4. It shall be the normal practice to arrange with foreign central banks
for the coordination of foreign currency transactions. In making operating
arrangements with foreign central banks on System holdings of foreign
currencies, the Federal Reserve Bank of New York shall not commit itself
to maintain any specific balance, unless authorized by the Federal Open
Market Committee. Any agreements or understandings concerning the
administration of the accounts maintained by the Federal Reserve Bank of
New York with the foreign banks designated by the Board of Governors under
Section 214.5 of Regulation N shall be referred for review and approval to
the Committee.
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5. Foreign currency holdings shall be invested insofar as practicable,
considering needs for minimum working balances. Such investments shall be
in liquid form, and generally have no more than 12 months remaining to
maturity. When appropriate in connection with arrangements to provide
investment facilities for foreign currency holdings, U. S. Government
securities may be purchased from foreign central banks under agreements
for repurchase of such securities within 30 calendar days.
6. All operations undertaken pursuant to the preceding paragraphs shall
be reported promptly to the Foreign Currency Subcommittee and the Committee.
The Foreign Currency Subcommittee consists of the Chairman and Vice Chairman
of the Committee, the Vice Chairman of the Board of Governors, and such other
member of the Board as the Chairman may designate (or in the absence of
members of the Board serving on the Subcommittee, other Board Members
designated by the Chairman as alternates, and in the absence of the Vice
Chairman of the Committee, his alternate). Meetings of the Subcommittee
shall be called at the request of any member, or at the request of the
Manager for Foreign Operations for the purposes of reviewing recent or
contemplated operations and of consulting with the Manager on other
matters relating to his responsibilities. At the request of any member
of the Subcommittee, questions arising from such reviews and consultations
shall be referred for determination to the Federal Open Market Committee.
7.
The Chairman is authorized:
A. With the approval of the Committee, to enter into any needed
agreement or understanding with the Secretary of the Treasury about the
division of responsibility for foreign currency operations between the
System and the Treasury;
B. To keep the Secretary of the Treasury fully advised concerning
System foreign currency operations, and to consult with the Secretary on
policy matters relating to foreign currency operations;
C. From time to time, to transmit appropriate reports and information
to the National Advisory Council on International Monetary and Financial
Policies.
8. Staff officers of the Committee are authorized to transmit pertinent
information on System foreign currency operations to appropriate officials
of the Treasury Department.
9. All Federal Reserve Banks shall participate in the foreign currency
operations for System Account in accordance with paragraph 3 G(1) of the
Board of Governors' Statement of Procedure with Respect to Foreign
Relationships of Federal Reserve Banks dated January 1, 1944.
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3/29-30/82
By unanimous vote, the Foreign Currency Directive shown below was
reaffirmed:
FOREIGN CURRENCY DIRECTIVE
1. System operations in foreign currencies shall generally be directed at
countering disorderly market conditions, provided that market exchange rates
for the U. S. dollar reflect actions and behavior consistent with the IMF
Article IV, Section 1.
2.
To achieve this end the System shall:
A. Undertake spot and forward purchases and sales of foreign exchange.
B. Maintain reciprocal currency ("swap") arrangements with selected
foreign central banks and with the Bank for International Settlements.
C. Cooperate in other respects with central banks of other countries
and with international monetary institutions.
3.
Transactions may also be undertaken:
A. To adjust System balances in light of probable future needs for
currencies.
B. To provide means for meeting System and Treasury commitments in
particular currencies, and to facilitate operations of the Exchange
Stabilization Fund.
C. For such other purposes as may be expressly authorized by the
Committee.
4.
System foreign currency operations shall be conducted:
A. In close and continuous consultation and cooperation with the United
States Treasury;
B.
In cooperation, as appropriate, with foreign monetary authorities;
and
C. In a manner consistent with the obligations of the United States
in the International Monetary Fund regarding exchange arrangements under the
IMF Article IV.
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By unanimous vote, the Procedural Instructions with respect to
Foreign Currency Operations shown below were reaffirmed:
PROCEDURAL INSTRUCTIONS WITH RESPECT TO
FOREIGN CURRENCY OPERATIONS
In conducting operations pursuant to the authorization and direction
of the Federal Open Market Committee as set forth in the Authorization for
Foreign Currency Operations and the Foreign Currency Directive, the Federal
Reserve Bank of New York, through the Manager for Foreign Operations, System
Open Market Account, shall be guided by the following procedural understandings
with respect to consultations and clearance with the Committee, the Foreign
Currency Subcommittee, and the Chairman of the Committee. All operations
undertaken pursuant to such clearances shall be reported promptly to the
Committee.
1. The Manager for Foreign Operations shall clear with the Subcommittee
(or with the Chairman, if the Chairman believes that consultation with
the Subcommittee is not feasible in the time available):
A. Any operation that would result in a change in the System's overall
open position in foreign currencies exceeding $300 million on any day or
$600 million since the most recent regular meeting of the Committee.
B. Any operation that would result in a change on any day in the
System's net position in a single foreign currency exceeding $150 million,
or $300 million when the operation is associated with repayment of swap
drawings.
C. Any operation that might generate a substantial volume of trading
in a particular currency by the System, even though the change in the System's
net position in that currency might be less than the limits specified in 1B.
D. Any swap drawing proposed by a foreign bank not exceeding the
larger of (i) $200 million or (ii) 15 percent of the size of the swap arrange
ment.
2. The Manager for Foreign Operations shall clear with the Committee (or
with the Subcommittee, if the Subcommittee believes that consultation with
the full Committee is not feasible in the time available, or with the Chair
man, if the Chairman believes that consultation with the Subcommittee is
not feasible in the time available):
A. Any operation that would result in a change in the System's overall
open position in foreign currencies exceeding $1.5 billion since the most
recent regular meeting of the Committee.
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3/29-30/82
B. Any swap drawing proposed by a foreign bank exceeding the larger
of (i) $200 million or (ii) 15 percent of the size of the swap arrangement.
3. The Manager for Foreign Operations shall also consult with the Sub
committee or the Chairman about proposed swap drawings by the System, and
about any operations that are not of a routine character.
By unanimous vote, the Committee reaffirmed the agreement of
January 17, 1977, to "warehouse" foreign currencies for the Exchange Stabi
lization Fund and for the Treasury on the terms agreed upon by the Committee
at its meeting on March 18, 1980, with the understanding that the agreement
would be subject to annual review.
By unanimous vote, the minutes of actions taken at the meeting
of the Federal Open Market Committee held on February 1-2, 1982, were
approved.
By unanimous vote, System open market transactions in Government
securities, agency obligations, and bankers acceptances during the period
February 2 through March 29, 1982, were ratified.
Secretary's note: All of the preceding actions were taken
on Monday, March 29, 1982.
With Messrs. Black and Wallich 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 domestic policy directive:
The information reviewed at this meeting suggests that
real GNP declined appreciably further in the first quarter
of 1982 but that final purchases were sustained and the
contraction in activity moderated during the quarter; prices
on the average rose much less rapidly than in the preceding
quarter. In January weakness in activity was accentuated by
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unusually severe weather, and in February the nominal value
of retail sales rebounded while industrial production and
nonfarm payroll employment recovered part of their January
declines. The unemployment rate in February, at 8.8 percent,
was unchanged from December. Although housing starts rose
further in the first two months of the year, they remained
at a depressed level. The rise in both the consumer price
index and the producer price index for finished goods moderated
substantially, and the advance in the index of average hourly
earnings on the average remained at a reduced pace.
The weighted average value of the dollar against major
foreign currencies continued to rise strongly in February
and March; foreign monetary authorities intervened on a sub
stantial scale to resist the depreciation of their currencies.
The U.S. foreign trade deficit in January and February on the
average was somewhat less than the fourth-quarter rate.
M1 declined in February, after three months of rapid growth,
and then increased moderately in early March. Growth of M2 slowed
appreciably in February, owing to a slackening of the expansion
in the nontransaction component as well as to the decline in M1.
Short-term market interest rates and bond yields on balance have
declined since early February, and mortgage interest rates have
edged down.
The Federal Open Market Committee seeks to foster monetary
and financial conditions that will help to reduce inflation,
promote a resumption of growth in output on a sustainable basis,
and contribute to a sustainable pattern of international trans
actions. At its meeting in early February, the Committee agreed
that its objectives would be furthered by growth of M1, M2, and
M3 from the fourth quarter of 1981 to the fourth quarter of 1982
within ranges of 2-1/2 to 5-1/2 percent, 6 to 9 percent, and
6-1/2 to 9-1/2 percent respectively. The associated range for
bank credit was 6 to 9 percent.
In the short run, the Committee seeks behavior of reserve
aggregates consistent with growth of M1 and M2 from March to
June at annual rates of about 3 percent and 8 percent respectively.
The Committee also noted that deviations from these targets should
be evaluated in light of the probability that M2 would be less
affected over the period than M1 by deposit shifts related to the
tax date and by changes in the relative importance of NOW accounts
as a savings vehicle. Some shortfall in growth of M1, consistent
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3/29-30/82
with progress toward the upper part of the range for the year as
a whole, would be acceptable in the context of appreciably reduced
pressures in the money market and relative strength of other
aggregates. The Chairman may call for Committee consultation
if it appears to the Manager for Domestic Operations that pursuit
of the monetary objectives and related reserve paths during the
period before the next meeting is likely to be associated with a
federal funds rate persistently outside a range of 12 to 16
percent.
It was agreed that the next meeting of the Federal Open Market
Committee would be held on Tuesday, May 18, 1982, at 9:30 a.m.
The meeting adjourned.
Secretary's Note: On April 13-14, 1982, by unanimous vote,
(with Mr. Roos voting as alternate for Mr. Ford), Committee
members voted to increase from $3 billion to $5 billion the
limit on changes between Committee meetings in System Account
holdings of U.S. government and federal agency securities
specified in paragraph 1(a) of the authorization for domestic
open market operations, effective immediately, for the period
ending with the close of business on May 18, 1982.
Secretary's Note: On April 26-27, 1982, by unanimous vote,
(with Messrs. Roos and Guffey voting as alternates for
Messrs. Ford and Balles, respectively, and Mr. Gramley
absent), Committee members voted to approve an additional
increase of $1 billion, to $6 billion, in the intermeeting
limit on changes in holding of U.S. government and federal
agency securities.
Secretary
@FedFRASER