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Meeting of Federal Open Market Committee March 10, 1978 MINUTES OF ACTIONS A meeting of the Federal Open Market Committee was held on Friday, March 10, 1978, at 11:30 a.m. This was a telephone conference meeting, and each individual was in Washington, D. C., except as otherwise indicated in parentheses in the following list of those participating. PARTICIPATING: Mr. Burns Mr. Coldwell (Philadelphia) Mr. Eastburn Mr. Jackson Mr. Miller Mr. Wallich Mr. Willes (Minneapolis) (Cleveland) Mr. Winn Mr. Volcker Mr. Kimbrel, Alternate for Mr. Baughman (Atlanta) Mr. Mr. Mr. Mr. Broida, Secretary Altmann, Deputy Secretary O'Connell, General Counsel Axilrod, Economist Messrs. Kichline and Truman, Associate Economists Mr. Pardee, Deputy Manager for Foreign Operations (New York) Mr. Sternlight, Deputy Manager for Domestic Operations (New York) - 2 - 3/10/78 Mr. Coyne, Assistant to the Board of Governors Mrs. Deck, Staff Assistant, Open Market Secretariat, Board of Governors Mr. J. Davis (Cleveland), Senior Vice President, Federal Reserve Bank of Cleveland Messrs. Brandt (Atlanta) and Kaminow (Philadelphia), Vice Presidents Federal Reserve Banks of Atlanta and Philadelphia, respectively Mr. Meek, (New York) Monetary Adviser, Federal Reserve Bank of New York By unanimous vote, on nomination by Chairman Burns, the Committee elected G. William Miller to succeed Dr. Burns as Chairman for the period until the election of Committee officers at the organization meeting of the Committee to be held on March 21, 1978. By unanimous vote,the Committee modified the domestic policy directive adopted at its meeting of February 28, 1978, to call for open market operations directed at maintaining the Federal funds rate at about the prevailing level of 6-3/4 per cent for the time being. The meeting adjourned. Secretary's note: Subsequent to the telephone meeting the Committee, with Messrs. Baughman and Gardner 3/10/78 - 3 - absent and not voting (Mr. Kimbrel voted as alternate for Mr. Baughman), delegated authority to Chairman Miller to negotiate an increase in the System's swap arrangement with the German Federal Bank in an amount up to $2 billion if he determined that the detailed arrangements were satisfactory, and approved a concurrent amendment to paragraph 2 of the authorization for foreign currency operations to raise the amount specified there for the swap arrangement with the German Federal Bank correspondingly. Acting pursuant to authority delegated to him by the Federal Open Market Committee on March 10, 1978, Chairman Miller, after determining that the detailed arrangements were satisfactory, approved a $2 billion increase in the System's swap line with the German Federal Bank on March 11, 1978. Accordingly, under the terms of the Committee's action on March 10, paragraph 2 of the authorization for foreign currency operations was amended, effective March 11, to raise the amount specified there for the swap arrangement with the German Federal Bank from $2 billion to $4 billion. Secretary