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Week ending: August 27, 1980

Most large commercial banks have
[creased their prime lending rate to 11.50 percent
m 11.00 percent. This increase in the prime
rate—the interest rate charged to corporate
borrowers with the highest credit rating—follows a
series of reductions that began in mid-April, when
the prime rate reached an historic peak of 20
percent.
One reason why banks have raised their
prime lending rates is because demand for business
loans has increased recently. From the four weeks
ending June 18 to the four weeks ending August 20,
for example, business loans (commercial and
industrial) at weekly-reporting large commercial
banks increased at a seasonally adjusted rate of 9.9
percent. In contrast, during an equivalent time
period prior to the week ending June 18, business
loans decreased at a 9.3 percent rate.
Another factor currently influencing the
upward adjustment of the prime rate is the general
increase in interest rates and in the 90-day
certificate of deposit (CD) rate, in particular.
Because 90-day CDs represent a major source of
short-term loanable funds to commercial banks,
movements in the 90-day CD rate tend to affect
the prime rate. For example, after reaching a
peak of 18.07 percent in the week ending April 4,
the 90-day CD rate plummeted to a level of 8.25
percent during the week ending June 20. This 982
basis point decline in the CD rate was reflected in
the 800 basis point drop in the prime rate during
the same period. Recently, however, the CD rate
has increased to 10.68 percent, 243 basis points
above the late June level.


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

Prepared by Federal Reserve Bank of St. Louis
Released: August 29, 1980

T9

2

ADJUSTED MONETARY BASE
AVERAGES OF DAILY FIGURES

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

166

BILLIONS
— JUL.

23

AUG.
162

—

1

15 29

160.7
61.4
162.1
161 .9
163.0
163.0

12

26

10 24

7

5

21

LATEST DATA PLOTTED WEEK ENDING:

19

2

16 30

AUGUST 27,

13

27

12 26

9 23

7

21

4

18

2

16

50

I 1 I I L LI
13

27

10 24

1980

THE ADJUSTED MONETARY BASE CONSISTS OF: < I ) MEMBER BANK RESERVES AT THE FEDERAL RESERVE
BANKS, (2) CURRENCY IN CIRCULATION (CURRENCY HELD BY THE PUBLIC AND ]N THE VAULTS OF
COfcMEftciAL BANKS), AND ( 3 ) AN ADJUSTMENT FOR R|fERVE REQUIREMENT RAT 10 CHANGES.
THE
MAJOR SOURCE OF THE ADJUSTED MONETARY BASE IS FEDERAL RESERVE CREDIT.
n lnFpCFBnijTED
BY THIS BANK.
A DETAILED DESCRIPTION OF THE ADJUSTED MONETARY BASE IS AVAILABLE FROM
THIS BANK.

ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,
8/29/79

11/28/79

AVERAGE OF FOUR WEEKS ENDING:

1/30/80

2/27/80

3/26/80

4/30/80

5/28/80

6/25/80

7.8
6.3
5.8
6.8
7.4
8.4

5.3
5.0
6.4
7.1
8.4

4.1
6.3
7.2
8.6

7.7
8.4
10.0

10.3
11.9

12.2

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/30/80
2/27/80
3/26/80
4/30/80
5/28/80
6/25/80
7/30/80
8/27/80

8.4
8.4
8.2
7.6
7.3
7.6
7.8
8. 4

8.9
8.4
7.4
6.9
7.5
7.8
8.6

'5';*


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

ADJUSTED BANK RESERVES 1/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

billions

48.7
48.4
49.0
50.0

1979

1980

LATEST DATA PLOTTED WEEK ENDING: AUGUST 20.

1980

1/ ADJUSTED MONETARY BASE LESS CURRENCY HELD BY THE NONBANK PUBLIC (MEMBER BANK RESERVES AT
FEDERAL RESERVE BANKS ( + ) CURRENCY HELD BY COMMERCIAL BANKS).

ADJUSTED BANK RESERVES
COMPOUNDED ANNUAL RATES OF CHANGE,
8/22/79

11/21/79

1/23/80

2/20/80

7.0
6.0
1.9
3. 1
3.4
5.5

6. 2
0.8
2.6
3.0
5.5

AVERAGE OF FOUR WEEKS ENDING:

3/19/80

4/23/80

5/21/80

6/18/80

6.2
10.4

11.3

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/23/80
2/20/80
3/19/80
4/23/80
5/21/80
6/18/80
7/23/80
8/20/80

9.0
8.4
8.4
7.8
5.8
6. 1
5.9
7.0


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

8.8
8.7
7.7
4.7
5.2
5. 1
6.6

-2.4
0.8
1.8
5.0

-1.3
0.8
5.1

PREPARED BY FEDERAL RESERVE BANK OF ST.

3

LOUIS

4

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

-------- 1---------- -----------

395 ---------- 1-------------,----BILLIONS
374.6
373.0
373.2
382.9
378.6
378.7

_ JUL.
_
AUG.

I I 1 I
JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

1979
LATEST DATA PLOTTED WEEK ENDING:
CURRENT DATA APPEAR

MAY

JUN

JUL

AUG

SEP

1980
AUGUST 20.

1980

IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

MIA CONSISTS OF CURRENCY AND COIN PLUS COMMERCIAL BANK DEMAND DEPOSITS HELD BY THE NONBANK
PUBLIC EXCLUDING THOSE HELD BY FOREIGN BANKS AND OFFICIAL INSTITUTIONS.

MONEY STOCK I Ml A )
COMPOUNDED ANNUAL RATES OF CHANGE,

8/22/79

11/21/79

4.6
5.5
4.6
2.5
1 .2
2.0
2.7
4. 1

6.0
4.4
1 . 1
-0.7
0.8
1 .9
3.8

1/23/80

AVERAGE OF FOUR WEEKS ENDING:

2/20/80

3/19/80

4/23/80

5/21/80

6/18/80

-5.6
-6.9
-3.0
-0.4
2.7

-9.5
-3.7
-0.3
3.3

0.0
3.4
7.4

9.8
13.3

14.4

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/23/80
2/20/80
3/19/80
4/23/80
5/21/80
6/18/80
7/23/80
8/20/80


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

4.6
-1.0
-3. 1
-0.6
1 .2
3.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

395

MONEY STOCK ( M1B )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

— JUL .

395.5
393.9

AUG.

BILLIONS OF OOLLARS
415

404.5
400.4
400.6

INI
2

16 30

13

27

12

26

9 23

1979

1960

LATEST DATA PLOTTED WEEK ENDING-. AUGUST 20,

1980

CURRENT DATA APPEAR IN THE BOARD 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,
8/22/79

11/21/79

5.3
6.2
5.4
3.6
2.0
3.0
4.0
5.4

7.2
5.6
2.7
0.5
2. 1
3.6
5.5

/23/80

2/20/80

5.7
0.8
-2.0
0.6
2.9
5.5

-3.4
-5.7
-1.6
1.5
4.7

AVERAGE OF FOUR WEEKS ENDING:

3/19/80

4/23/80

5/21/80

6/18/80

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/23/80
2/20/80
3/19/80
4/23/80
5/21/80
6/18/80
7/23/80
8/20/80


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

-8.4
-2.3
1.7
5.4

0.3
5.0
9.2

12.9
16.2

17.7

PREPARED BY FEDERAL RESERVE BANK OF ST.

5

LOUIS

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATFS ENDED FRIDAY

PERCENT

21 .0
20.0

20.0

9.0

19.0

18.0

18.0

17.0

17.0

16.0

16.0

PRIME BANK
LOAN RATE
15.0

14.0

14.0

90 DAY CD’S

13.0

13.0

12.0

12.0
COMMERCIAL PAPER

1 1.0

11.0
CORPORATE Aaa BONDS

10.0

10.0

9.0

8.0

MUNICIPAL
BONDS*#

7.0

6.0
I I 1 1 I 1 1
IT

31

14 18

12

26

9

23

7 21

15 29

14 28

11

25

9 23

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

AUGUST 29,

1980

90 DAY
CD'S

1980
JULY

4

AUG.

18
25
1

SEP.

0

6 20

15
22
29 *
5
12
19
26

PRIME
COMMERCIAL
PAPER XXX

PRIME
BANKERS’
ACCEPTANCES

CORPORATE
Aaa BONDS

CORPORATE
Baa BONDS

MUNICIPAL
BONDS XX

8.70
8.63
8.70
8.50
8.93
9.29
9.46
10. 13
10.68

8.38
8.31
8.37
8.31
8.64
8.90
9. 16
9.93
10.34

8.66
8.58
8.55
8.44
8.97
9. 14
9.39
10.14
10.69

10.84
10.94
11.09
11.11
11.33
11.44
11.57
11.70
11.83

12.66
12.61
12.66
12.65
12.70
12.97
13.07
13.28
13.31

7.88
7.95
8.03
8. 19
8.59
8.61
8.53
8.68
N. A.

1

’

’ ‘l
* AVERAGES OF RATES AVAILABLE.
** BOND BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS.
KK* DATA ARE 4-MONTH C0K84ERCIAL PAPER RATES.
N.A. - NOT AVAILABLE


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

THURSDAY DATA.

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

20.0

20.0

19.0

19.0

18.0

18.0

17.0

17.0

16.0

16.0

FEDERAL FUNDS RATE
15.0

15.0

14.0

14.0

13.0

3-MONTH V
TREASURY BILL

12.0

I2.Q
DISCOUNT
RATE

1 1 .0

1 1.0

10.0

10.0
5-YEAR
TREASURY SECURITIES

9.0

8.0
7.0

6.0
0
4 28

12 26

9 23

7

21

DEC

JAN
1980

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING-. AUGUST 29.

1980
JULY

AUG.

SEP.

4
1 1
18
25
1
8
15
22
29 X
5
12
19
26

1980

FEDERAL
FUNDS KK

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL aae*

1-YEAR
TREASURY
BILL

5-YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECUR1T1ES

9.41
9.26
8.98
8.68
8.98
9.60
8.85
9.35
10.03

7.92
8.08
7.98
7.93
8.44
8.58
8.60
9.41
10.03

8. 10
8. 1 1
8. 1 1
7.91
8.28
8.87
8.89
9.77
10.25

7.86
7.91
7.93
7.94
8.43
8.61
8.94
9.85
10.31

9.47
9.46
9.44
9.46
9.92
10.12
10.47
11.21
11.70

10.05
10.13
10.16
10.17
10.51
10.65
10.86
11.02
11.14

I*ASEVEN^DA?FAVERAGESVFORAWElk ENDING WEDNESDAY TWO DAYS EARLIER THAN DATE

SHOWN.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
NFW I SSIIF RATF
RATES ON LONG-TERM TREASURY SECURITIES ARE COMPUTED BY THE FEDERAL RESERVE BANK OF ST. LOUIS.
TREASURY 8'LL YIFLDS ON DISCOUNT BASIS.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

8

MULT I PL I ERS is
CURRENCY OF MONEY STOCK MEASURES 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO
JUL.

16

2 .334

20

2

MONEY MULTIPLIERS

AUG.

RATIO
JUL.

6
23
30

2.464
2!4!
2i442

20

2:495
2:473
2:458
I I I I I I

LATEST DATA PLOTTED WEEK ENDING:

AUGUST 20,

1980

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

BILLIONS OF DOLLARS

-------- ---------------------

COMPOUNDED ANNUAL RATES
OF CHANGE, Hvcr\n\3C. ur
vr virwiut. AVERAGE OF
------THE FOUR WEEKS ENDING
AUGUST 20
1980 FROM
8, 1980
------JUN.
MAY
21, 1980
APR. 23, 1980
MAR. 19, 1980
------FEB. 20, 1980
NOV. 21, 1979
AUG. 22, 1979

12.6
12^
li:3

CURRENCY

980
JUL.

BILLIONS

16

AUG.

111.8
1 12:3
112:6
113:3
1 12:9
113.0

I I I 1 I I I I 1 I I I I I I I
2

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

1979

MAY

JUN

16 30

JUL

13 27

AUG

10 24

SEP

1980

LATEST DATA PLOTTED WEEK ENDING: AUGUST 20,

1980

1/ RATIO OF MONEY STOCK (MIA) OR (M1B) TO ADJUSTED MONETARY BASE
2/ CURRENT DATA APPEAR


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

IN THE BOARD OF GOVERNORS'

H.6 RELEASE.

PREPARED BY FEDERAL RESERVE BANK OF ST.

LOUIS

1 16

DEMAND DEPOSIT COMPONENT OF MONEY STOCK lMIA)
AVERAGES OF DAILY F1 CURES
SEASONALLY ADJUSTED

billions of

dollars

BILLIONS

AUG.

262.8
260.7
260.6
269.5
265.7
265.7

-4 260

1979
LATEST DATA PLOTTED WEEK ENDING:

AUGUST 20.

1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’

H.6 RELEASE.

DEMAND DEPOSIT COMPONENT OF MONEY STOCK (MIA)
COMPOUNDED ANNUAL RATES OF CHANGE,
8/22/79

11/21/79

2.9
4.2
3.0
0.3
-1.6
-0.5
0. 4
2.0

5.3
2.9
-1 .3
-3.9
-2.0
-0.6
1 .7

1/23/80

AVERAGE OF FOUR WEEKS ENDING:

2/20/80

3/19/80

-10.2
-12.2
-7.3
-4.0
-0. 1

- 15.5
-8.2
-3.9
0.7

4/23/80

5/21/80

6/18/80

-3.9
0.6
5.7

9.3
13.7

15.1

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/23/80
2/20/80
3/19/80
4/23/80
5/21/80
6/18/80
7/23/80
8/20/80


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

3.3
-4.0
-7. 1
-4.0
-1 . 7
1 .4

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
475

BILLIONS OF DOLLARS

r----------1----------------- 1- - ---

-------- -------------------

-}

1980

JUL.
460.4
460.8
462.4
462.9
463.7

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

1979
LATEST DATA PLOTTED WEEK ENDING:

AUGUST 20.

ISSUED

JUN

JUL

AUG

SEP

1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS'
TIME DEPOSITS

MAY
1980

H.6 RELEASE.

IN DENOMINATIONS OF LESS THAN 1100,000.

SAVINGS PLUS SMALL TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE,
8/22/79

11/21/79

AVERAGE OF FOUR WEEKS ENDING:

1/23/80

2/20/80

3/19/80

4/23/80

5/21/80

6/18/80

6. 1
9.4
8.5
8.8
9.8
10.0

11.7
9.8
9.9
10.8
10.9

0.6
0.5
1 .5
11.5

8.0
10.2
10.5

12.3
12. 1

12.9

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/23/80
2/20/80
3/19/80
4/23/80
5/21/80
6/18/80
7/23/80
8/20/80

8.2
7.6
7.7
8.6
8.3
8.5
9. 1
9.3


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

6.6
7.0
8.7
8.2
8.5
9.2
9.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

475

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS IN THE NATION
1980

BILLIONS OF DOLLARS
4.0

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS
MILLIONS

JUL. 23
AUG.

3.0

6

2.5
2.0
1.5
1.0
0.5

I

15 29

12 26

10 24

7

21

NOV

5

19

2

16 30

13 27

12

26

9 23

7

21

MAY

DEC

4

18

2

16 30

13

27

10 24

JUN

LATEST DATA PLOTTED WEEK ENO I NGs AUGUST 27, 1980

BUSINESS LOANS
(COMMERCIAL AND

INDUSTRIAL)

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY AUJUSItU

BILLIONS OF DOLLARS
168 ----------1---------- -i—
” COMPOUNDED ANNUAL RATES
“OF unHIWt. rs YLI'AVJL. OF '
Ur CHANGE, AVERAGE wi
— THE FOUR WEEKS ENDING
— AUGUST 20. 1980 FROM
_ THE FOUR WEEKS ENDING:
—JUN.
“MAY
— APR.
— MAR.
—_FEB.
_ NOV.
__AUG.

18, 1980
21, 1980
23, 1980
19, 1980
20, 1980
21, 1979
22, 1979

BILLIONS OF DOLLARS
-------------------- -----------168

-0.2

MILLION?
JUL. 16
AUG.

6

158,848
159,085
160,572
161,251
161,247

I I I I I I I I I 1 I I 1 1 I
29

12 26

10 24

7

21

5

19

2

16 30

13

27

FEB
LATEST DATA PLOTTED WEEK ENDING: AUGUST 20,


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

12

MAR

26

9 23

7

21

MAY

4

18

JUN

2

16 30

13

AUG

27

10

24

SEP

1980
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

12
LARGE TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
206
206
204

168.8

202

— AUC.

200

106
104

102

182

180
178
176
174

NOV

DEC

LATEST DATA PLOTTED WEEK ENDING. AUGUST 20.

MAY

JUN

AUG

SEP

1080

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.
TIME DEPOSITS ISSUED IN DENOMINATIONS OF 8100,000 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