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F/A/za/VCT/ZlL

mom?

DATA.

Week ending: January 23, 1980

US) ^QR

Tm operating strategy that emphasizes control of bank reserves as the means
of controlling money growth requires a greater willingness on the part of the Federal
Reserve to periodically permit greater fluctuations in the effective federal funds
rate.* Such a policy does not necessarily imply, however, that large week-to-week
fluctuations in the funds rate will be the norm. In the period immediately following the
announcement of such a major change in operating procedures, one would expect to see
large variation in the funds rate. As the banks become accustomed to the new
procedure, such large changes could become less common. For example, following the
October 6, 1979 announcement by the Federal Open Market Committee, the absolute
value of the change in this rate from the week ending October 17 to the week ending
October 24 was 192 basis points—the largest week-to-week change for the yew. Over
the eight-week period following the October 6 announcement, the average absolute
value of the week-to-week changes was about 101 basis points. In contrast, the average
change was only 19 basis points over the previous eight-week period.
Recent week-to-week changes in the federal funds rate, however, have
decreased relative to the immediate post-October 6 levels. Over the most recent
seven-week period, for instance, the absolute values of week-to-week changes in the
effective rate averaged about 19 basis points. This average change is similar to the
average fluctuation for the corresponding seven-week period ending January 24, 1979
when it was about 24 basis points. Although week-to-week fluctuations have decreased
in recent weeks, daily trading ranges and day-to-day changes in the effective rate have
remained substantially larger compared with those before October 6.
CHANGE IN WEEKLY AVERAGE
EFFECTIVE FEDERAL FUNDS RATE
(in basis points)

Week Ending

Change in Rate
From Previous Week
(Absolute Values)

10/17/79
10/24/79
10/31/79
11/07/79
11/14/79
11/21/79
11/28/79
12/05/79

122
192
47
184
47
20
64
131

Week Ending

.

Change in Rate
From Previous Week
(Absolute Values)

12/12/79
12/19/79
12/26/79
1/02/80
1/09/80
1/16/80
1/23/80

2
11
41
55
10
3
14

*The daily effective federal funds rate, which is based on transactions made through
brokers in New York City, is an average of rates occurring during each day weighted by
the amounts that were traded. The weekly federal funds rate reported in this release
(page 7) is a seven-day average of daily effective rates for the week ending on
Wednesday.


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

Prepared by Federal Reserve Bank of St. Louis
Released: January 25, 7980

2

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

BILLIONS OF DOLLARS
160 ---------- ,------------- 1------

DEC.

LLIONS OF DOLLARS
—i------------- ----------- 160

153.6

IQ

155.3
155.2

I I I I
6 20

3

17

31

14 28

FEB

14

28

MAR

II

25

© 23

6 20

4

JUN

APR

5

LATEST DATA PLOTTED WEEK ENDING; JANUARY 23.

18

2©

12 28

10 24

JUL

7

21

NOV

5

1©

2

18 50

13 27

DEC

1980

THE ADJUSTED MONETARY BASE CONSISTS OF; ( 1 ) MEMBER BANK RESERVES AT THE FEDERAL RESERVE
BANKS <2 VCURRENCY IN CIRCULATION (CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS OF
COACACIAL BANKS). AND < 3 ) AN ADJUSTMENT FOR RESERVE REQUIREMENT RAT 10 CHANGES
THE
MAJOR SOURCE OF THE ADJUSTED MONETARY BASE IS FEDERAL RESERVE CREDIT.
DATA ARE COMPUTED
BY THIS BAM(.
A DETAILED DESCRIPTION OF THE ADJUSTED MONETARY BASE IS AVAILABLE FROM
THIS BANK.

ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,

AVERAGE OF FOUR WEEKS ENDING-.

1/24/79

4/25/79

6/20/79

7/25/79

8/22/79

5.8
7. 1
7.4
8.4
8.7
8.3
8. 1
8.5

9.4
9.4
10.6
10.6
9.9
9.4
9.7

11.1
12.5
12.1
10.8
10.0
10.3

12.3
11.8
10.3
9.3
9.8

13. 1
10.6
9.4
9.9

9/26/79 10/24/79 11/21/79

TO THE AVERAGE
OF FOUR WEEKS
ENDING;
6/20/79
7/25/79
8/22/79
9/26/79
10/24/79
11/21/79
12/26/79
1/23/80


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

8.0
7.3
8.5

5.8
7.8

9.0

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIER is
ADJUSTED FEDERAL RESERVE CREDIT
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

RATIO
2.9

2.9

MULTI PLIER

2.6

2.4

1980

BALLS

DEC .

111

i 111

in

111

in ■ IUI. in

LATEST DATA PLOTTED WEEK ENOING; JANUARY 16,

1 1 1 XI .1 1

111

1111

2?

1:475

■LI 1

9
2.464
~
16
2.475
I i i i I i i i i i i i i!

I960

BILLIONS OF DOLLARS
138 ---------1------------1--------- 1--------136
13-4
132
130

BILLIONS OF DOLLARS
138

COMPOUNDED ANNUAL R/kTES
---- OF CHANGE. AVERAGE
THE FOUR WEEKS END 1 4G
“ JANUARY 23. 1980 FRC)M
THE FOUR WEEKS END 1
-

NOV.
OCT.
— SEP.
_
AUG.
JUL.
_

21,
24,
26,
22,
25,

JA n: 24:

136

r ~
ADJ USTED FEDEf*AL RES LRVE

-

:redit

134

/J

1979 11.2
1979 10.7
1979 11.S
1979 12.2
1979 12.4
1979

2.3

2.48J

1.
JAh

2.2

jg

132

130

9.;
-

128

128

-

A___ t

126

126

124

V

BILLIO MS. ~

1asu
DEC

122

JAhi.

-

124
122

2

135. J

120

120

!m
DEC
1978

11II

111

JAN

FEB

XL in XX.
MAR

APR

111

111

XLLL i i i
13 29 12 26

JUN
JUL
1979

AUG

SEP

1111 111
10 24
7 21
OCT

Lil i 11111 Lxi:
3 10

2

16 30

13 27

JAN
FEB
1980

LATEST DATA PLOTTED WEEK ENDING: JANUARY 23, 1980
1/ RATIO OF MONEY STOCK (Ml ) / ADJUSTED MONETARY BASE
2/ FEDERAL RESERVE CREDIT CONSISTS OF FEDERAL RESERVE MOLDINGS OF SECURITIES. LOANS. FLOAT
AND OTHER ASSETS.
ADJUSTED FEDERAL RESERVE CREDIT IS COMPUTED BY SUBTRACTING TREASURY
DEPOSITS AT FEDERAL RESERVE BANKS FROM THIS SERIES, AND ADJUSTING THE SERIES FOR RE­
SERVE REQUIREMENT RATIO CHANGES.
DATA ARE COITUTED BY THIS BANK.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

4

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
965
960

BILLIONS

955

951.2
951.8
954. I
953.6
955.6
958. I

950
945
940
935
930
925
920
915
910
905
900
895
890
885
880
875
870
.865

fl 20

3

17 31

14 28

FEB

14

28

MAR

11

25

0 23

APR

8 20

4

18

I

15 29

12

26

10 24

7

0

21

JUN
JUL
1979

1978

LATEST DATA PLOTTED WEEK ENDING: JANUARY 16,

I960

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

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

AVERAGE OF FOUR WEEKS ENDING:

1/17/79

4/18/79

6/13/79

7/18/79

8/15/79

6.9
8.3
8.7
9.2
9.5
9. 1
8.7
8.6

12. 1
1 1.9
12. 1
12.0
11.1
10.3
10.0

13. 1
12.9
12.7
11.2
10.2
9.8

12.0
12.0
10.3
9.2
8.9

12.2
9.9
8.8
8.5

9/19/79 10/17/79 11/14/79

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
6/13/79
7/18/79
8/15/79
9/19/79
10/17/79
1 1/14/79
12/19/79
1/16/80


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

8.4
7.3
7.3

5.4
5.9

6.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK (Ml )
AVbKAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
390 --------- ,------------1-----

LLIONS OF DOLLARS
1------------ ---------- 390

BILLIONS
381 .6
383.0
382.9
382.6
383.6

6 20

3 17 31

14 28 14 28 II

FEB

MAR

25

0 23

0 20

4 18

I

IS 29 12 26 10 24

LATEST DATA PLOTTED WEEK ENDING: JANUARY 16,

7 21

5

NOV

APR

DEC

19

2

16 30

13 27

1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
THE MONEY STOCK CONSISTS OF DEMAW DEPOSITS PLUS CURRENCY ANO COIN HELD BY THE NONBAI* PUBLIC.

MONEY STOCK (Ml )
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
1/17/79

4/18/79

6/13/79

7/18/79

8/15/79

4.8
6.2
6.4
7.0
7. 1
6.0
5.9
6.0

11.1
10.3
10.4
10. 1
8. 1
7.5
7.5

10. 1
10.4
10.0
7.2
6.7
6.8

9.3
9. 1
5.8
5.5
5.8

9.8
5.2
5.0
5.4

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
6/13/79
7/18/79
8/15/79
9/19/79
10/17/79
11/M/79
12/19/79
1/16/80


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

9/19/79 10/17/79 11/14/79

1.9
2.9
3.9

0.5
2.5

5.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT

-zn 16.5

16.5 pr

13.5
13.0

PRIME BANK
LOAN RATE
COMMERCIAL PAPER
1 I .0

90 DAY CD'S

BONDS

CORPORATE

MUNICI PAL
BONDSXX

'Mil
1

15

DEC
1978

20

12 26

0 23

JAN

FEB

0 23 6 20

MAR

APR

4 18

MAY

I

15 20 13 27 10 24

JUN

JUL
1979

AUG

7 21

SEP

5

10

OCT

2

IB 30

NOV

14 28 II

DEC

JAN.

FEB.

1980

90 DAY
CD'S

1980
7
14
21
28
A

18
25 *
1
8
15
22
29

8 22

198C

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: JANUARY 25,

DEC.

25

JAN

PRIME
COMMERCIAL
PAPER XXX

PRIME
BANKERS'
ACCEPTANCES

CORPORATE
AAA BONDS

MUNICIPAL
BONDS am

13.09
13.63
13.56
13.43
13.45
13.38
13.33
13.41

12.79
13.29
13.41
13. 18
12.98
12.82
12.88
12.97

12.83
13.58
13.47
13.42
13.29
13.09
13.04
13.23

10.58
10.70
10.79
10.87
10.88
10.91
10.99
11.17

7.17
7.26
7.22
7.23
7.32
7.30
7.28
N. A.

X AVERAGES OF RATES AVAILABLE.
am BONO BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BONOS, THURSDAY DATA.
XXX DATA ARE 4-MONTH COMMERCIAL PAPER RATES.
N.A. - 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
16.0

FEDERAL FUNDS RATE
15.5
15.0
14.5

14.5

M.O

14.0

13.5

13.5
13.0
12.5

12.0
1 I .5

11.5

1 1.0
10.5

10.5
10.0

DISCOUNT

9.5

3-5 YEAR
TREASURY SECURITIES

9.0
THREE-MONTH TREASURY
BILL MARKET YIELD

8.5
8.0
7.5

I

15 20

12 26

JAN

0 23

9 23

FEB

6 20

4

APR

MAY

18

15 20

13 27

10 24

5

10

2

16 30 14 28

11

25

8 22

1979
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: JANUARY 25,

1980
DEC.

JAN.

FEB.

7
14
21
28
4
1 1
18
25 *
1
8
15
22
29

I960

FEDERAL
FUNDS am

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL mm

1-YEAR
TREASURY
BILL

3-5 YEAR
TREASURY
SECUR1T1ES

LONG-TERM
TREASURY
SECUR1T1ES

13.77
13.79
13.90
13.49
14.04
13.94
13.91
13.77

1 1.75
12.34
12.06
11.99
12. 10
11.72
11.91
12.14

11.77
11.77
12.00
11,35
11.88
11.86
1 1 .78
11.89

10.86
11.10
10.85
10.86
10.97
10.78
10.83
10.98

10.33
10.49
10.45
10.55
10.59
10.58
10.66
10.81

9.97
10. 14
10.08
10. 13
10.21
10.27
10.42
10.66

* AVERAGES OF RATES AVAILABLE.
** SEVEN-DAY AVERAGES FOR WEEK ENDING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.9 RELEASE.
mm 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

0

8

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
580

569.6
570.6
571.1

570.6
573.0
574.6

535
530

525
520
515
510

6

20

3

17 31

14 28

FEB

14 28

MAR

II

23

0 23

6 20

4

JUN

APR

JUL

LATEST DATA PLOTTED WEEK ENDING: JANUARY 16,

18

1

15 29

12 28

10 24

7

21

NOV

5

10

2

16 30

13 27

DEC

1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
* NET TIME DEPOSITS ARE DEFINED AS: SAVINGS DEPOSITS, TIME DEPOSITS OPEN ACCOUNT PLUS TIME
CERTIFICATES OF DEPOSIT OTHER THAN NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN
DENOMINATIONS OF 8100,000 OR MORE BY LARGE WEEKLY REPORTING COMhCRCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
1/17/79

4/18/79

6/13/79

7/18/79

8/15/79

15.2
14.7
14.6
14.0
12.6
1 1.9

13.9
14.0
13.5
1 1.9
11.1

13.9
13.2
1 1.3
10.5

9/19/79 10/17/79 11/14/79

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
6/13/79
7/18/79
8/15/79
9/19/79
10/17/79
11/14/79
12/19/79
1/16/80

8.3
9.8
10.3
10.8
11.2
11.2
10.7
10.4


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

12.7
13. 1
13.2
13.4
13. 1
12.2
1 1 .6

12.9
10.5
9.6

8.9
8.2

6.7

PREPARED BY FEDERAL RESERVE BAM( OF ST. LOUIS

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

I LL IQN5
275.5
275.0
276.5
276.2
275.5
276.5

6 20

3 17 31

14 2B 14 28 II

FEB

MAR

28

0 23

APR

6 20

4 18

I

IS 20 12 26 10 24

JUN
JUL
1979

1978

LATEST DATA PLOTTED WEEK ENDING: JANUARY 16.

7 21

NOV

DEC

I960

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

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
1/17/79

4/18/79

6/13/79

3.6
5.5
5.4
5.9
6.2
4.7
4.8
4.9

12. 1
10.4
10. 1
9.8
7.2
6.9
6.9

9.7
9.5
9.2
5.8
5.7
5.8

7/18/79. 8/15/79

9/19/79 10/17/79 11/14/79

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
6/13/79
7/18/79
B/15/79
9/19/79
10/17/79
11/14/79
12/19/79
1/16/80


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

7.3
7.6
3.7
4.0
4.3

8.8
3.3
3.8
4.2

-0.2
1.8
2.8

- 1 .0
1.2

5.6

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

10

CURRENCY COMPONENT
OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
1 10 ---------- 1------------- ,------

BILLIONS OF DOLLARS
------------------------------- 1 10

BILLIPN?
106. I
106.2
_

106.5
106.7

JAN.

107.2
107.1

6

20

DEC
1978

3

17

JAN

31

M

FEB

26

14

28

MAR

II

25

APR

0

23

MAY

6 20

1

JUN
JUL
I 979

AUG

LATEST DATA PLOTTED WEEK ENOING: JANUARY 16,

15

29

12

26

SEP

10 24

7

OCT

NOV

21

DEC

JAN
FEB
1960

I960

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

CURRENCY
COMPOUNDED ANNUAL RATES OF CHANGE,

AVERAGE OF FOUR WEEKS ENDING:

1/17/79

4/:4/79

6/13/79

7/18/79

8/15/79

8.0
8. 1
9.0
9.8
9.8
9.4
8.8
9.0

8.7
10. 1
1 U.2
10.9
10.3
9.2
9.5

1 1.3
12.7
11.8
10.8
9.3
9.6

15.0
13.2
11.5
9.5
9.8

12.4
10.5
8.3
8.9

9/19/79 10/17/79 11/14/79

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
6/13/79
7/18/79
8/15/79
9/19/79
10/17/79
11/14/79
12/19/79
1/16/80


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

7.7
5.9
7.2

4.5
6.6

6.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILLIONS OF DOLLARS

AVERAGES OF DAILY FIGURES

OF DOLLARS

0
1980

MILLIONS

DEC.

19

JAN.

2

6 20
DEC
1978

1684

I I I I
23
3 17 31 14 28 14 28 11 2S
JAN
FEB
MAR
APR
MAY

6 20

4

15 20 12 26 10 24

LATEST DATA PLOTTED WEEK ENDING-. JANUARY 23,

7 21

5

NOV

I

18

JUN
JUL
1979

DEC

19

2

16 30

13 27

1980

BUSINESS LOANS

( COMMERCIAL AND INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
158 ----------1------------- 1--------- r——t
" COMPOUNDED ANNUAL RA
156 — OF CHANGE, AVERAGE 0
- the four Weeks endin<
154 — JANUARY 16, 1980 FROf4
- THE FOUR WEEKS END 1 N<it
152
IT NOV. 14. 1979
11.9
17,1979
6.6
150 _OCT.
_ SEP.
19,1979
7.8
__ AUG.
15,1979
11.3
148
JUL.
18,1979
13.8
146

_ JAN. \7\

i 979

BILLIONS OF DOLLARS
X.-

/

-

150
1 48
46

18.5

-

-

-

y

142
-

-

-

-

-

-

140
138
136

132

-

130

_—

128
126

-

-

las 5

/•

-

-

0

17 31

DEC

JAN

MILLIONS

_

144
142
140
138
136
134
132

r
1111

152

...

144

134

154

l-LL
FEB

MAR

1111

11 L 1 1 1

14 28

1978

14 28 11

APR

20

25

MAY

INI
OCT

NOV

DEC

JAN
FEB
1980

1980
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

130
128
126

0

4 I;

JUN
JUL
1979

LATEST DATA PLOTTED WEEK ENDING: JANUARY 16,


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

111
SEP

i in

111

111

151,195
DEC. 12
19
153,108
26
154,159
155,497
—
JAN. 2
9
156,248
16
156.921
—
111111111 ii 11111'

12
CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
NOT SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

112
110

108
106
104

102
100
98
96
94
92
90

FEB

MAR

APR

LATEST DATA PLOTTED WEEK ENDING: JANUARY 16,

NOV

DEC

1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF 8100,000 OR MORE BY LARGE
WEEKLY REPORTING COMMERCIAL BANKS.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS