Full text of U.S. Financial Data : Week Ending: February 14, 1979

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F//V/I/VC/>1£.

0/1

Week ending: February 14, 1979
Most short-term interest rates have declined somewhat
the end of December, after increasing during most of 1973.
rate on 9°-day certificates of deposit (CDs) has
shown the largest decline, falling about 80 basis points. This
decline has widened the gap between the 90-day CD rate and the
commercial bank prime rate.
Because CDs are an important source of funds to banks,
changes in the interest rate on CDs have a large effect on the
cost of loanable funds to banks. In calculating this cost, banks
must consider the reserve requirements on funds raised by issuing
CDs. For time deposits with initial maturities of 30-179 days,
member banks reserve requirements are 3 percent on the first $5
million and 6 percent on the balance.
In addition, there is a
supplementary reserve requirement of 2 percent on time deposits of
$100,000 or more.
To.illustrate how reserve requirements affect the cost
to banks of issuing additional CDs, consider a large bank which
issues a $100,000 CD at a 10 percent interest rate with a maturity
of 90 days. The annual interest cost is $10,000. By issuing the
CD, the bank is required to increase its reserves by $8 000
leaving $92,000 available to lend. The $10,000 in annual interest
is 10.87 percent of the $92,000. This 10.87 percent is the
effective cost of obtaining loanable funds by issuing the 90-day
CD. The table below presents the interest rate on 90-day CDs, the
same rate adjusted for reserve requirements (see market ’rate
adjusted), and the prime rate since December of last year.
Prime Rate Compared to the Effective Cost of Issuing 90-Day
Certificates of Deposit

Interest Rate on 90-Day
Certificates of Deposit
Period*

Market
Rate

1978 December 1
8
15
22
29
1979 January 5
12
19
26
February 2
9
16

10.66%
10.64
10.53
10.68
10.96
10.88
10.71
10.49
10.44
10.20
10.13
10.17

Market Rate
Adjusted
11.59%
11.57
11.45
11.61
11.91
11.83
11.64
11.40
11.35
11.09
11.01
11.05

Prime
Rate
11.50%
11.50
11.50
11.57
11.75
11.75
11.75
11.75
11.75
11.75
11.75
11.75

Difference
-0.09%
-0.07
0.05
-0.04
-0.16
-0.08
0.11
0.35
0.40
0.66
0.74
0.70

* Seven-day average for the week ending Wednesday two days earlier.


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

Prepared by Federal Reserve Bank of St. Louis
Released: February 16, 1979

2

MONETARY BASE

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS
----- ------------ --------- 146

ILL IONS

— JAN.

10

142.3
143. 1

FEB.

4 is FEB
i is

I

13 29 12 26 10 24

JAN

7 21
JUN

3 18

2
SEP

JUL

OCT

1979

LATEST OATA PLOTTED WEEK ENDINGi FEBRUARY 14,

1979

THE MONETARY BASE CONSISTS OF MEMBER *j
. 5ESjjJV^j t*TVAULTS^LCO§*RC*AL^MCS)? ADJuItED
IN CIRCULATION ( CURRENCY HELD BY THE PUBLIC AND IN THEVAUUIS
£ OFDEPOSITS BETWEEN BANKS
FOR RESERVE REQUIREMENT R>TIO CHANGES AND SHIFTS 1
THE SAME rrrt ufMONETARY BASE ARE
WHERE DIFFERENT R|f|RVE REQUIREMENT RATIOS £?C*Y:Rr COMPUTED BYTHIS BANK. A DETAILED DE^vJIf&EReserve bam< of st. louis.

MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE. AVERAGE OF FOUR WEEKS ENDING,
2/15/78

5/17/78

7/12/78

8/16/7B

3
10 0
9.8
9.0
8.9
8.5

2.4
11.2
9.9
9.5
8.9

9/15/78 10/11/78 11/15/78 12/13/78

TO THE AVERAGE
OF FOUR WEEKS
ENDING,
7/12/78
8/16/78
9/13/78

10/11/78
11/15/78
12/13/78

1/17/79
2/14/79

8.4
8.0

8.4
9.0
9. 1
8.7
8.7
8.5


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

8.6

9. 1

10.0
9.9
9.3
9.2
8.8

11 3
9.6
9.2

8.6

7.7
7.9
7.4

7.2

6.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

_
MULTIPLIER^
ADJUSTED FEDERAL RESERVE CRED I T 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

RATIO
2.9

2,9

MULT PLIER
'

!sl 11

XII XXL 1 1 ' 1

1 1 1 XI 1 1

------ “V

XJIS
JAN •
0
17
24
31
FEB . 7
111 XXX INI XXL XXL -Li-Ill -11 1 1

RATIO
2.524
2.534
2.517
2.501
2.488 —
2.507
1 1 1 1 1 1 1 \iS

1979

BILL-IONS OF DOLLARS

BILLIONS OF DOLLARS
128

COMPOUNDED ANNUAL RATES
OF CHANCE AVERAGE OF
THE FOUR WEEKS EM)INC
FEBRUARY 14 1979 FROM
THE FOUR WEEKS ENDING.
1978
1978
1978
1978
1978
1978
1978

10.3
9.9
10.7
I 1 .3
1 1.5

ADJUSTED FEDERAL RESERVE CREDIT

10.8

9.9

Bill I QNS
123.4
124.8
124.4

124.9

124.6
124.7

■ ■ 111 ■ 11111 ■ 1111
1

IS 28

MAR

12
APR

26

10 24

7 21

18 30

MAY

JUN JUL
AUC
1978
LATEST DATA PLOTTED WEEK ENDING. FEBRUARY 14, 1979

13 27

SEP

11

OCT

25

8 22

17 31

NOV
1975

1/ RATIO OF MONEY STOCK (Ml ) / MONETARY BASE.

* pgpaSii'SKlSi’Sa
SfT“
ski SMgrwsa! gnu. ism Ms ‘ai.’ffl rLwifsi&r1


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

PREPARE!) BY FEDERAL RESERVE BAWC OF ST. LOUIS

3

4

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUS ItU

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
----------------- ------- zn 880

880 r=------- 1--------- 1------1979
877.9
875.0

877.0

=r FEB

DEC

4 18
JAN

1 IS
FEB

1

13 29 12 26 10 24

2

7 21

JUN

16 30 13 27

11

25

8 22

6 20

3 17 31

14 28

JUL

LATEST DATA PLOTTED WEEK EM) INC. FEBRUARY 7, 1979
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
COMPOUNDED ANNUAL RATES OF CHANGE,

2/8/78

5/10/78

8.4
8.4
9. 1
9.5
9. 1
8.6
7.9
7.1

8.8
10.0
10.4
9.6
B. 8
7.8
6.8

7/5/78

8/9/78

10.9
11.4
9. B
8.8
7.4
6.3

13.2
10.3
8.9
7.2
5.8

AVERAGE OF FOUR WEEKS ENDINGi

9/6/78

10/4/78

8.8
7.4
5.8
4.4

5.2
3.9
2.7

11/8/78

12/6/78

TO THE AVERAGE
OF FOUR WEEKS
ENDINGt

7/ 5/78
8/ 9/78
9/ 6/78
10/ 4/78
11/ 8/78
12/ 6/78
1/10/79
2/ 7/79


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK (Ml )

AVERAGES OF DAILY FIGURES
StASUNALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
----- ------------ ---------- 370

370 r----------,------------,----------

1979

BlkUQNS

__ JAN.
360.6
360.9
— FEB.

357.3
360.2

1-L.I I I I I
7 21 4 18 1 15
DEC
JAN FEB
1977

1 13 29 12 26 \q 24
MAR
APR
MAY

7 21 3 19
JUN JUL
1978

13 27 11 23

6 22

6 20

9 IT 31 14 28
1979

LATEST DATA PLOTTED WEEK END IMGt FEBRUARY 7, 1979
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.

THE WHET STOCK CONSISTS OF OEMAI® DEPOSITS PLUS CURRENCY AM> COIN MELD BY THE NOWJAHC PUBLIC.

MONEY STOCK (Ml )
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING.
2/B/78

5/10/78

7/5/78

8/9/78

9/6/78

10/4/78

ll/B/78

12/6/78

TO THE AVERAGE
OF FOUR WEEKS
ENDING.
7/ 5/78
8/ 9/78
9/ 6/78
10/ 4/78
11/ 8/78
12/ 6/78
1/10/79
2/ 7/79

a.3
7.6
8. 1
8.8
7.6
6.7
6. 1
5.0


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

6.4
7.6
8.8
7.0
5.8
5.1
3.7

7.8
9.6
6.8
5.2
4.5
2.8

12.7
7.5
5.3
4.4
2. 4

5. B
3.4
2.9
0.8

-1.0
-0. 1

-1 "9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT
12.5 r-

CORPORATE AAA BONDS
’RIME BANK
.PAN RATE

90 DAY CD’S***
COMMERCIAL PAPER

-MUNICIPAL

2

16

30 13 27 10 24 10 24 7 21

3 19

2 16 30 H 28 11

23

8 22

6 20

3 17

JAN FEB
OCT
NOV
DEC
JAN FEB
MAR
APR MAY
JUN
JUL
AUG
1977
1978
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING. FEBRUARY 16, 1979

1979

29
19

16 X
23

90 DAY
CD’S ***

PRIME
COMMERCIAL
PAPER
4-6 MONTH

PRIME
BANKERS’
ACCEPTANCES

CORPORATE
Aaa BONDS

MUNICIPAL
BONDS X*

10.66
10.64
10.53
10.68
10.96
10. B8
10.71
10.49
10. 44
10.20
10.13
10.17

10.28
10.32
10.36
10.50
10.61
10.55
10.40
10.36
10.16
10.07
9.99
10.02

10.52
10.38
10.37
10.78
10.73
10.65
10.41
10.29
10.11
9.92
10.03
9.94

9.04
9. 06
9. 12
9.24
9.27
9.26
9.26
9.28
9. 24
9. 19
9.23
9.25

6.29

EARUERATHANEDATES SHOWN.
N.A. - NOT AVAILABLE


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

1

6.45
6.67
6.61
6.50
6.30
6.31
N.A.

M'ShS?!* irsifK gsu ««« ™ d«s
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.9 RELEASE.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
11.0 i—

PERCENT
1 1 .0

10.0

3-5 YEAR
TREASURY SECURITIES

FEDERAL FUNDS RATE

DISCOUNT RATE

TREASURY
YIELD

Z

16 50 15 27

DEC
1977

JAN

10 24 10 24

FEB

MAR

7 21

5 19

2

APR

MAY

JUN
JUL
1978

10 30 14 28 11

23 8 22

AUG

SEP

0 20

OCT

3 17

1

13 29 12 26

NOV

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGt FEBRUARY
FEBRUARY 16, 1979

1979
DEC.

1
8
? 15
22
29
JAN.
5
12
19
26
2
FEB.
9
16 x

FEDERAL
FUNDS m

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL saBK

1-YEAR
TREASURY
BILL

3-5 YEAR
TREASURY
SECUR1T1ES

LONG-TERM
TREASURY
SECUR1T1ES

9.85
9.87
9.79
9.75
10.25
10.59
9.97
10.05
10.05
10. 12
10.06
10. 15

8.98
8.93
8.93
9.28
9.25
9.34
9.30
9.44
9.34
9.28
9.24
9.28

9.33
9.22
9.26
9.52
9.58
9.55
9.44
9.53
9.48
9.38
9.31
9.34

9. 29
9.32
9.28
9.61
9.65
9.61
9.61
9.61
9. 46
9.31
9.34
9.36

9. 01
9.02
9. 12
9.41
9. 48
9. 46
9. 46
9. 43
9. 27
9.02
9.07
9. 17

8.71
8.75

23

8.94
8.97
8.97
8.90
8.96

it AVERAGES OF RATES AVAILABLE.

,WEEK

CURRENT DATA APPEAR
BOARD OF
GOVERNORS’
RELEASE.
"* 8SXHfcP£VIkA'(ERA(!ES
FOflIN THE ENDING
WEDNESDAY
TWOH.9
DAYS
EARLIER THAN DATE SHOWN.
HI NEW ISSUE RATE
tkSIury bill'viELDaR0N3DiscountRb*sil.*RE C0UPUTED by the feder*l reserve b*« of ST- L0IJIS'


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

8

NET TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
525

31LLIONS

520

515.5
515
FEB.

516. I
516.5
516.8

510
505
500
495
490
485
480
475
470
465

1

JAN

13 2S' 12 26 10 24

FEB

7 21

5 19

JUN

JUL

Z

16 30 13 27 11

23

B 22

6 20

3

IT 31

14 28

1979
LATEST DATA PLOTTED WEEK ENDING. FEBRUARY 7. 1979
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.
* NET TIME DEPOSITS ARE DEFINED AS: SAVINGS DEPOSITS, Tl11* DSFOSITS OPEN'ACCOUNT PLUS TIME
CERTIFICATES OF DEPOSIT OTHER THAN KCGOTI ABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN
DENOMINATIONS OF 8100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING.
2/8/78

5/10/78

7/5/78

8/9/78

9/6/78

13.0
12.6
12.0
11.4
9.6
8.8

13.6
12.4
1 1.5
9.2
8.4

11.1
10.4
7.9
7. 1

10/4/78

11/8/78

12/6/78

9.7
6.8
6. 1

4.8
4.5

2.6

TO THE AVERAGE
OF FOUR WEEKS
ENDING.
7/ 5/78
8/ 9/78
9/ 6/78
10/ 4/78
11/ 8/78
12/ 6/78
1/10/79
2/ 7/79

8.5
9.0
9.8
10. 1
10. 1
10.0
9. 1
8.7


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

10.5
1 1.6
11.6
11.4
11.1
9.7
9. 1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
AVERAGES OF DAILY FIGURES
StASONALLY ADJUSTED

BILLIONS OF DOLLARS
275 --------- 1--------- 1--------

laza
JAN,

ILL IONS OF DOLLARS
—|---------------------- 275

g_L.Lkl.QNS
264.6
259.5
258.7
261.3

13 27

DEC
1977

JAN

FEB

MAR

APR

MAY

JUN JUL
1978

SEP

II

23

• 22

4 20

} IT 31

14 21

OCT

LATEST DATA PLOTTED WEEK ENDING, FEBRUARY 7, 1979
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
COMPOUNDED ANNUAL RATES OF CHANGE,
2/8/78

5/10/78

7/5/78

AVERAGE OF FOUR WEEKS ENDINGi

8/9/78

9/6/78

12.3
5.9
3. 1
2. 1
-0.7

3.8
0.8
0.2
-2.7

10/4/78

11/8/78

12/6/78

-3.2
-6.9

-7.4

TO THE AVERAGE
OF FOUR WEEKS
ENDINGi
7/ 5/78
8/ 9/78
9/ 6/78
10/ 4/78
11/ 8/78
12/ 6/78
1/10/79
2/ 7/79

8. 1
7.3
7.7
8.4
6.8
5.6
4.9
3.2


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

5.7
6.9
8.2
5.8
4.2
3.4
1.4

6.8
8.9
5.3
3.2
2.4
0.0

-4.5
-3.3
-6.0

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

10

CURRENCY COMPONENT
OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

1979

BILLIONS OF DOLLARS

ILL IONS
97.8
98.0
98.0
98.4
98.5
98.9

4 18

1

13

1

13 29 12 26 10 24

7 21

3 19

2

18 30 13 27

SEP

11

23

6 22

OCT
1979

1977
LATEST DATA PLOTTED WEEK ENDING* FEBRUARY 7,

1979

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

CURRENCY
COMPOUNDED ANNUAL RATES OF CHANGE
2/8/78

5/10/78

8.5
8,4
9. 1
9.7
9.6
9.6
9.7
9.8

8. 1
9.3
10.3
10. 1
10.0
10. 1
10.2

AVERAGE OF FOUR WEEKS ENDING*

7/5/78

8/9/78

9/6/78

10. 4
1 1.7
1 1.0
10.8
10.6
10.7

14.0
12. 1
11.6
11.2
1 1.2

11.5
1 1.0
10.8
10.8

10/4/78

11/8/78

12/6/78

9.4
9.7
10.0

10.0
10.4

10.6

TO THE AVERAGE
OF FOUR WEEKS
ENDINGi
7/ 5/78
8/ 9/78
9/ 6/78
10/ 4/78
11/ 8/78
12/ 6/78
1/10/79
2/ 7/79


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS IN THE NATION
AVERAGES OF DAILY FI GURES

r dollars

LLIONS OF DOLLARS
“1----------------------------“I 3.5

iaza MILLIONS
JAN. 10

1054

4 18

JAN

I

1

IS 29 12 26 10 24

7 21

S 18

2 18 30 13 27

II 23

8 22

6 20

FEB

3 17 31

14 28

1978
LATEST DATA PLOTTED WEEK ENQINGt FEBRUARY 14,

19T9

BUSINESS LOANS
( COMMERCIAL AND INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
M4

CONFOUNDED ANNUAL RATES
ur uwiuc. Avuvtvi; ur

M2

THE FOUR WEEKS ENDING

ucucMDtn c/ ,

iw/o r-nur

“THE FOUR WEEKS ENDING,
OCT.
SEP.
AUG.
JUL.
_ JUN.
MAR.
DEC.

25,
27,
30,
26,
28,
29,
28,

140

1978
1978
1978
1978
1978
1978
1977

138
136
134

NO NEW DATA AVAILABLE
132
130
128
126
MILLIONS

NOV. 22

124
122

139,776
139,166

120
118

2 16 30 14 28 11

DEC

23

8 22

JAN

8 22

3 10

5 17 81

14 28 12 26

JUN

0 25

8 20

1111 1 1 1 1 I I I I I I
4 18

1

13 28 13 27 10 24

JUL

LATEST DATA PLOTTED WEEK ENDINGi DECEMBER 27, 1978


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

12
CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
BILLIONS OF DOLLARS

WEDNESDAY FIGURES
NOT SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
106
104
10Z

100
98

4 19

I 19

I 19 29 12 26 10 24

7 21
JUN

LATEST DATA PLOTTED WEEK END INC. FEBRUARY 7f

3 19
JUL

Z 16 30 13 27 11 23

9 22

6 20

3 12 31 M 29

1979

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
KEGOTI ABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF 9100,000 OR MORE BY LARGE
WEEKLY REPORTING COUIERCIAL BANKS.


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS