Full text of U.S. Financial Data : July 1, 1999

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July 1, 1999

USFinancialData
THE WEEK'S HIGHLIGHTS:
At its June 30 meeting, the Federal Open Market Committee
(FOMC) voted to raise its federal funds rate target from
4.75 percent to 5 percent. In announcing this decision, the
FOMC said the following:
“Last fall the Committee reduced interest rates to counter
a significant seizing-up of financial markets in the United
States. Since then much of the financial strain has eased,
foreign economies have firmed, and economic activity in
the United States has moved forward at a brisk pace.
Accordingly, the full degree of adjustment is judged no longer
necessary. Owing to the uncertain resolution of the balance
of conflicting forces in the economy going forward, the
FOMC has chosen to adopt a directive that includes no
predilection about near-term policy action.”
The Conference Board’s index of leading economic indicators rose
0.3 percent in May, more than offsetting April’s 0.1 percent decline.
Following a 0.7 percent rate-of-decline during April, real personal
consumption expenditures (PCE) rose at a 7.3 percent rate in May.
Purchases of durable goods were especially strong, boosted by a
4.9 percent rise (not annualized) in motor vehicles and parts.
The Conference Board’s index of consumer confidence rose
0.7 percentage points in June to 138.4 percent (1985=100), its highest
reading since the all-time high of 142.3 reached in October 1968.
All data are seasonally adjusted unless otherwise indicated.
U.S. Financial Data is published weekly by the Research Division of the Federal Reserve Bank of
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