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^1-7

f=

/ /V

XX

/V

C / XX L

CJ XX T XX

Week ending: August 20, 1980

Rary
The effective costs to business firms of borrowing at the commercial bank
prime rate depends on whether interest rates are fixed for the maturity of the loans
or change when the prime rate changes while loans are outstanding. Surveys of the
terms on business loans at commercial banks conducted in February and May of this
year indicate that about half of the short-term business loans (average maturity of
approximately three months) were at fixed interest rates, and the remaining loans
were at floating rates.
The table below indicates the difference between the average prime rate
each week and the average prime rate in the following 13 weeks (91 days). During
January and February and the first week of March of this year, borrowing at a fixed
rate would have been less expensive, because of subsequent increases in the prime
rate. Beginning in March, however, the fixed rate became higher than the floating
rate, with the differential rising to above 5 percentage points. Changes that have
occurred this year in the relation between the prevailing prime rate and the average
prime rate in subsequent weeks indicate how the decision on whether loans are made
at a fixed or floating prime interest rate can affect the effective costs of borrowing
and the revenue of banks.
Comparison of Fixed and Floating Prime Rate

Week
ending
Jan.

4, 1930
11

18
25

Feb.

1
8

15

22
29
Mar. 7
14

21
Apr.

28
4

11
18
25
May 2
9
16
23


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Average
prime
rate
15.25%
15.25
15.25
15.25
15.25
15.25
15.25
15.64
16.54
17.11
17.86
18.71
19.07
19.64
20.00
19.93
19.50
19.21
18.07
17.36
16.50

Average prime rate
in the following
13 weeks
16.62 %
16.99
17.35
17.67
17.98
18.19
18.36
18.42
18.34
18.09
17.71
17.21
16.66
16.08
15.43
14.79
14.15
13.52
12.98
12.49
12.07

Difference
-1.37%
-1.74

2.10

-

-2.42
-2.73
-2.94
-3.11
-2.78
-1.80
-0.98
0.15
1.50
2.41
3.56
4.57
5.14
5.35
5.69
5.09
4.87
4.43

Prepared by Federal Reserve Bank of St. Louis
Released: August 22, 1980

2

ADJUSTED MONETARY BASE
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS
>64 ---------- 1---------- 1--------

ILL IONS OF OOLLARS
—r------------------------ 164

BILLIONS
“ JUL.

160.5

16

160.7
161.4
162.1
161 .9
163.1

_ AUG.
_

I I I I 1 1-11
1

15 29

12

I I I I

I I I I
26

10 24

7

21

5

IS

2

16 30

13 27

FEB

12

26

9 23

7

2

21

16 30

13 27

MAR
1980

LATEST DATA PLOTTED WEEK ENOING-. AUGUST 20. 1980
tuc *n mcTcn untJFTARY otcc mNSI^TS OF■ ( 1 ) MEMBER BANK RESERVES AT THE FEDERAL RESERVE
BANKS "I I CURRENCTRTnBCIRCUL*t!oN < CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS OF
COIMeAciAL BANKS) AND (5) AN ADJUSTMENT FOR RESERVE REQUIREMENT RAT 10 CHANGES. _TNE|iTcri
ua tfiR ^OURCF OF THE ADJUSTED MONETARY BASE IS FEDERAL RESERVE CREDIT.
DATA ARE COMPUTED
BY THIS BANK
A DETAILED DESCRIPTION OF THE ADJUSTED MONETARY BASE IS AVAILABLE FROM
THIS BANK.

ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,
8/22/79

11/21/79

AVERAGE OF FOUR WEEKS ENOING:

1/23/80

2/20/80

3/19/80

4/23/80

5/21/80

8/18/80

8.2
6.6
5.8
6.5
7.0
8.2

6. 1
5.2
6.2
6.8
8.3

3.7
5.5
6.4
8.2

6.4
7.3
9.4

9.1
11.4

12.2

TO THE AVERAGE
OF FOUR WEEKS
ENOING:
1/23/80
2/20/80
3/19/80
4/23/80
5/21/80
6/18/80
8/20/80

8.7
8.6
8.6
8.0
7.5
7.7
7.8
8.4


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

8. 1
8.2
7.3
6.7
7.0
7.3
8.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

ADJUSTED BANK RESERVES 1/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
52 ,---------- ,---------- ,----------

BILLIONS OF DOLLARS
--------------------- ----------- 52

billions

JUL.

AUG.

48.6
48.7
48.4
48.8
48.7
48.9

2

NOV

16 30

13

27

12 26

9 23

7

21

4

IS

2

16 SO

13 27

DEC

1979
LATEST DATA PLOTTEO WEEK ENDING: AUGUST 13,

1980

" “DEilLDREiElvf8**fE,

' C ' “““

RESERVES *T

ADJUSTED BANK RESERVES
COMPOUNDED ANNUAL RATES OF CHANGE,
8/15/79

11/14/79

1/16/80

2/13/80

9.5
6.2
8.0
6.5
5.8
5.8
5.7
5.6

6. 1
9.4
6.7
5.6
5.6
5.4
5.4

4. 1
1 .7
1.3
2. 1
2.5
2.9

7.5
5. 1
5.2
5.0
5. 1

AVERAGE OF FOUR WEEKS ENDING:

3/12/80

4/16/80

5/14/80

2.7
3.4
3.9

6/11/80

4.9
5. I

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/16/80
2/13/80
3/12/80
4/16/80
5/14/80
6/11/80
7/16/80
8/13/80


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-1.2

0.8

1.8
2.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

4

MONEY STOCK ( Ml A )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
395 -----------1---------- 1--------

BILL IONS-OF DOLLARS
------------------- ----------- 395

BILLIONS
_ JUL.
_

AUG.

372.3
374.6
373.0
373.2
382.9
379.3

5

10

2

16 30

SEP
1979

JAN

LATEST DATA PLOTTED WEEK ENDING: AUGUST 13,

13 27

12

26

8

23

7

21

1980

FEB

MAR

APR
MAY
1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.
MIA CONSISTS OF CURRENCY AN0 COIN PLUS COfcirfERCIAL BANK DEMAND DEPOSITS HELD BY THE NONBANK
PUBLIC EXCLUDING THOSE HELD BY FOREIGN BANKS AND OFFICIAL INSTITUTIONS.

MONEY STOCK (MIA)
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
8/15/79

11/14/79

5.4
5.0
5.2
3.4
1.2
1.8
2.8
3.9

5.2
5.4
2.6
-0.5
0.6
2. 1
3.6

1/16/80

2/13/80

3/12/80

4/16/80

5/14/80

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/16/80
2/13/80
3/12/80
4/16/80
5/14/80
6/11/80
7/16/80
8/13/80


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4.6
0.2
-3.9
-1.7
0.7
2.8

-1 . 1
-6.0
-2.9
0.3
2.8

-10.9
-5.5
-1 .0
2.2

-4.8
1.2
4.9

10.0
12.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK ( M1B )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
415

BIUI ON?
— JUL.

— AUG.

393.0
395.5
393.9
394.1
404.5
401.1

1111
5

19

2

16 30

13

27

12

26

9

23

1980
LATEST OATA PLOTTED WEEK ENDING; AUGUST 13. 1980
CURRENT DATA APPEAR IN THE 80AR0 OF GOVERNORS' H.6 RELEASE.
MIB CONSISTS OF MIA PLUS OTHER CHECKABLE DEPOSITS AT ALL DEPOSITARY INSTITUTIONS.

MONEY STOCK (MIB)
COMPOUNDED ANNUAL RATES OF CHANGE,
8/15/79

11/14/79

6.2
5.7
5.9
4.4
2.2
2.8
4.0
5.2

6. 1
6.4
3.9
0.7
1 .7
3.5
5.2

1/16/80

2/13/80

AVERAGE OF FOUR WEEKS ENDING:

3/12/80

4/16/80

5/14/80

6/11/80

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/16/80
2/13/80
3/12/80
4/16/80
5/14/80
6/1l/80

7/

16/80
8/13/80


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

5. 1
1.6
-2.7
-0.6
2.2
4.5

0.9
-4.4
-1.5
2. 1
4.7

-9. 2
-4.0
1.0
4.3

-4. 1
2.9
6.8

12.3
14.8

17.6

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

ELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
21.0

20.0
19.0
18.0
17.0
16.0

PRIME BANK
LOAN RATE

15.0

14.0

14.0

90 DAY CD'S

13.0

13.0

12.0
COMMERCIAL PAPER

1 1.0
CORPORATE Aaa BONDS
10.0

10.0

9.0
Cl PAL
BONDS**

8.0
7.0
6.0
I I I I

0

1979

1980

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: AUGUST 22.

1980

90 DAY
CD’S

1980
JUNE

6
13
20
27
JULY
4
1 1
18
25
AUG.
1
8
15
22
29

m

PRIME
COfcMERC1AL
PAPER ***
6)*

PRIME
BANKERS’
ACCEPTANCES

CORPORATE
Aaa BONDS

CORPORATE
Baa BONDS

MUNICIPAL
BONDS X*

8.92
8.34
8.25
8.41
8.70
8.63
8.70
8.50
8.93
9.29
9.46
10.05

8.69
8.03
7.92
8.00
8.38
8.31
8.37
8.31
8.64
8.90
9. 16
9.82

8.68
8.06
8.08
8.33
8.66
8.58
8.55
8.44
8.97
9. 14
9.39
10.09

10.88
10.53
10.34
10.53
10.84
10.94
11.09
11.11
11.33
11.44
11.57
11.67

12.92
12.82
12.60
12.48
12.66
12.61
12.66
12.65
12.70
12.97
13.07
13.29

7.67
7.53
7.55
7.76
7.88
7.95
8.03
8. 19
8.59
8.61
8.53
N. A.

* AVERAGES OF RATES AVAILABLE.
** BOND BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.

mam

N.A. DATA ARE 4-MONTH COMMERCIAL PAPER RATES.
- NOT AVAILABLE


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

* *.
SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
20.0

20.0

19.0
18.0

18.0

17.0
16.0

FEDERAL FUNDS RATE

15.0
14.0

13.0

13.0

3-MONTH V
TREASURY BILL

12.0
5C0UNT
(ATE
1 1 .0

I I .0

10.0

10.0
5-YEAR
TREASURY SECURITIES

9.0
8.0
7.0
6.0
0

1

15

20

13

27

10

24

7

21

OEC

JUN

JAN

JUL

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOP THE WEEK ENDING: AUGUST 22,

1980
JUNE

6
13
20
27
JULY
4
1 1
18
25
AUG.
1
8
15
22 K
29

1980

FEDERAL
FUNDS aw

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL aaw

1-YEAR
TREASURY
BILL

5-YEAR
TREASURY
SECUR1T1ES

LONG-TERM
TREASURY
SECUR1T1ES

10.74
9.68
8.99
9.08
9.41
9.26
8.98
8.68
8.98
9.60
8.85
9.35

7.51
6.44
6.76
7.42
7.92
8.08
7.98
7.93
8.44
8.58
8.60
9.38

8. 17
6.94
6.66
7.11
8. 10
8. 1 1
8. 1 1
7.91
8.28
8.87
8.89
9.77

7.91
7.23
7.30
7.65
7.86
7.91
7.93
7.94
8.43
8.61
8.94
9.83

9.58
9.08
8.90
9.23
9.47
9.46
9.44
9.46
9.92
10. 12
10.47
11.13

10.08
9.64
9.45
9.74
10.05
10. 13
10. 16
10. 17
10.51
10.65
10.86
1 1.01

M AVERAGES OF RATES AVAILABLE.
MW SEVEN-DAY AVERAGES FOR WEEK ENDING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE,
aaw NEW ISSUE RATE
RATES ON LONG-TERM TREASURY SECURITIES ARE COMPUTED BY THE FEDERAL RESERVE BANK OF ST. LOUIS.
TREASURY BILL YIELDS ON DISCOUNT BASIS.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

8

MULTIPLIERS!/
CURRENCY OF MONEY STOCK MEASURES 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

RATIO

RATIO
MONEY MULTIPLIERS

!334
AUG.

HI

RALLQ
JUL .

.453
. 451

AUG.

: 477
11111111

LATEST DATA PLOTTED WEEK ENDING: AUGUST 13,

1980

BILLIONS OF DOLLARS
116 ---------- ,-----------1---------

BILLIONS OF DOLLARS
------------------- ----------- 1,6

COMPOUNDED ANNUAL RATES
OF
OF
ur CHANGE, AVERAGE ur
-----THE FOUR WEEKS ENDING
AUGUST 13 . 1980 FROM
wuuoi ij i3ou rnuM
THE FOUR WEEKS ENDING:
-----JUN.

1980

APR.
MAR.
-----FEB.
NOV.
(- aug!

13.2

1979
1979

CURRENCY

1980

I I I I

I I I I

I I I I I I I I I I I I I I I I

4 18
JUN

JUL

AUG

SEP
1979

OCT

NOV

DEC

JAN

FEB

MAR

BILLION?

APR
MAY
J 980

JUN

2 16 30 13 27
JUL

AUG

LATEST DATA PLOTTED WEEK ENDING: AUGUST 13. 1980
1/ RATIO OF MONEY STOCK (MIA) OR (M18) TO ADJUSTED MONETARY BASE
2/ CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

DEMAND DEPOSIT COMPONENT OF MONEY STOCK (MIA)
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
280

BILLIONS
260.8
262.8
260.7
260.6
269.6
266.3

1111

LATEST DATA PLOTTED WEEK ENDING-. AUGUST 13,

1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

DEMAND DEPOSIT COMPONENT OF MONEY STOCK ( Ml A )
COMPOUNDED ANNUAL RATES OF CHANGE
8/15/79

11/14/79

4.0
3.4
3.7
1 . 4
-1.6
-0.8
0.5
1 .7

4.0
4.4
0.5
-3.7
-2.3
-0.3
1 .4

AVERAGE OF FOUR WEEKS ENDING:

/16/80

2/13/80

3/12/80

3.0
-2.8
-8.3
-5.5
-2.3
0. 1

-4.3
-10.9
-6.9
-2.8
0. 1

- 17.3
- 10.4
-4.6
-0.9

4/16/80

5/14/80

6/11/80

10. 1
12.4

14.7

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/16/80
2/13/80
3/12/80
4/16/80
5/14/80
6/11/80
7/16/80
8/13/80


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-9.7
-1.8
2.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

10

SAVINGS PLUS SMALL TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

LLIONS OF DOLLARS
"T--------------------- -] 470

470 --------- ,--------- 1-------bjlliqns

458.5
459.6
462.4
463. I

6

20

JUN

4

18

JUL

I

IS

AUG

29

12

26 10 24

SEP

OCT

7

21

NOV

5

19

DEC

2

16

JAN

4

FEB

18

2

16 SO

IS 27

MAR

1979
LATEST DATA PLOTTED WEEK ENDING-. AUGUST 13,

1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN tIOO.OOO.

SAVINGS PLUS SMALL TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
8/15/79

11/14/79

8.4
8.0
7.8
8.7
8.5
8.6
9. 1
9.4

7.4
7. 1
8.7
8.5
8.6
9.3
9.6

1/16/80

2/13/80

3/12/80

4/16/80

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/16/80
2/13/80
3/12/80
4/16/80
5/14/80
6/11/80
7/16/BO
8/13/80


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

5.9
9. 1
8.6
8.8
9.7
10.0

10.6
9.5
9.5
10.4
10.7

1 1 . 1
10.6
11.3
1 1 .6

8.3
10. 2
10.8

5/14/80

11.6
1 1.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

Wl

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS

IN THE NATION

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS
4.0 r=--------1---------- 1-------1960 MILLIONS

I I I I
6 20

<1®

I

JUN

JUL

AUG

15

29

12 26 10 24

SEP

OCT

7 21

5 19

DEC

30

2

NOV

.

13 27

FEB

12 26

MAR

1979

billions

9 23

4

7 21

MAY
1960

18

2

16

JUN

LATEST DATA PLOTTED WEEK ENDING: AUGUST 20, 1

BUSINESS LOANS

( COMMERCIAL AND
BILLIONS OF DOLLARS
168 — ---------1------------

INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS
.......... ADJUSTED
168
-

Al RATES
OF CHANGE, AVERAGE OF
the four Weeks ending
AUGUST 13, I960 FROM
THE FOUR WEEKS ENDING:

166 —
164 —
L_
162 ”JUN. 11 ,
160
158

—
—
_

156

APR .
MAR .
FEB NOV ■
•

16,
12.
13,
14,
15,

1980
I960
1980
1980
1980
1979

-

7.4
2. 1
-1.3
-1.2
0.9
6. 1

/N

“

-------^ v

“

_

-

_

148

160

156
154
152
150
148
146

146

MILLIONS

1980

144

JUL.

142

9

“

158,635

"

144
142

i58^848
“
159,085
“ 140
160,572
"
AUG. 6
161.260
- 158
13
nil! i
1 LJ_ i i ii 1 LL 111. 1111... 1 1 111 LL III!
4 18
10 IS V
5 19 2 18 50 15 27 12 28 9 25 7 21
AUG
JUL
JAN
FEB MAR
APR
MAY
JUN
DEC
1980
23

140
138
T i i
0

162

158

1

r----------

r

152
150

f

/
/v/
_

164

/ k

154

166

6 20
JUN

4 18
JUL

111 Mil
1 15 20 12 2 6 10 24
OCT
SEP
AUG
1979

LATEST DATA PLOTTEC WEEK ENDING


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1 1 1
7 21
NOV

AUGUST 13

0

1980
PREPARED BY FEDERAL RESERVE BAI* OP ST. LOUIS

12
LARGE TIME DEPOSITS

ALL

COMMERCIAL BANKS

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

billions of

dollars

BILLIONS

1979
LATEST OATA PLOTTED WEEK ENDING: AUGUST 13.

l»«0
1980

CURRENT OATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
TIME DEPOSITS ISSUED IN DENOMINATIONS OF *100,000 OR MORE.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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