Full text of U.S. Financial Data : Week Ending: March 27, 1974

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Week ending: March 27, 1974
Ligp .
,
JUK 08 i

Short-term market interest rates have increased sharply in recent
> ^weeks. Most short-term rates had risen by five or more percentage points
from early 1972 to late last summer, then, with the exception of a brief up. turn
the fall, declined through late February.
In relation to early 1972,
short-term market rates currently are much higher, and in relation to Septem­
ber 1973, most short-term market rates currently are within about one per­
centage point. The three-month Treasury bill rate rose from a low of 3.20
percent in February 1972 to 8.95 percent in the week ending September 14,
1973, then fell to about 7.15 percent in the week ending October 19. After
subsequently varying within about one-half of a percentage point of 7.50 per­
cent, the three-month bill rate averaged 8.30 percent in recent days.
The predominant paths of most long-term interest rates have been
upward for the past year. Longer-term rates typically are less volatile
than short-term rates. However, yields on three- to five-year Government
securities have risen about a percentage point in the past month to 7.65
percent. Yields on corporate Aaa bonds averaged 8.10 percent early this
week, up from about 7.15 percent in early 1973. Upward revisions in
expectations of inflation probably have increased demand for long-term
loans relative to the supply, driving up the long-term rate.
Many commercial banks recently have adjusted the rate charged on
prime bank loans upward to 9 percent from 8.75 percent.* The prime rate
had fallen from 10 percent in late September and October to 8.75 percent
in late February. The February 27 issue of this release discussed factors
related to this decline. It noted that rapid increases in the monetary
base and declines in the rate on large 90-day certificates of deposit (CDs)
had tended to increase the supply of bank loans. At the same time upward
revisions in inflationary expectations and decreases in the commercial
paper rate had tended to shift demand for credit to markets other than
banks. In the past month some of these developments have been reversed.
Whereas the prime rate averaged about 80 basis points above the 90-day CD
rate from raid-Decenfcer to late February, by the week ending March 20, the
90-day CD rate was within about 10 basis points of the prime rate.
In the
past week the 90-day CD rate averaged 9.38 percent, surpassing the prime
rate. Business loans at commercial banks have shown renewed expansion
since late February. Demands for bank loans have probably been encouraged
by increases in the cost of alternative sources of funds—a 140 basis
point rise in the four- to six-month commercial paper rate since late
February and further increases in long-term rates.
Throughout the time in which these interest rate developments
have occurred, the monetary base has increased at a rapid and fairly
steady rate.
In the past year the base has increased 7.3 percent and in
the past three months it has increased at an 8.0 percent annual rate. The
nation's money stock has risen 6.2 percent in the past year and at a 6.7
percent annual rate in the past three months.

*

Effective Thursday, March 28, a number of major banks have raised
their prime rate to 9.25 percent.


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

Prepared by Federal Reserve Bank of St. Louis
Released: March 29, 1974

MONETARY BASE
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

1974

BILLIONS OF DOLLARS
108

MILLIONS

106

104

102

100

98

J IT 51 M II H tt II 28
FEB

MAR

9 *8

APR

• to

4

19

I IS 19 It 16 10 t4

JUN
JUL
1975

LATEST DATA PLOTTED WEEK ENDING, MARCH 27.

T tl

9 19

NOV

DEC

t 16 SO IS IT IS IT
FEB

MAR

1974

USES OF MONETARY BASE ARE MEMBER BAM4 RESERVES AND CURRENCY HELD BY THE PUBLIC AND NOVEMBER
BANKS, ADJUSTED FOR RESERVE REQUIREMENT CHANGES ANO SHIFTS IN DEPOSITS.
FOR A DESCRIPTION
OF THE BASE SEE THE AUGUST 1968 ••REVIEW OF THIS BANK.

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
3/28/73 6/27/73 8/29/73 9/26/73 10/24/73 11/28/73 12/26/73 1/30/74
TO THE AVERAGE
OF FOUR WEEKS
ENDING:
8/29/73
9/26/73
10/24/73
11/28/73
12/26/73
1/30/74
2/27/74
3/27/74


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

5.7
5.5
6.2
6.6
7.0
7.5
7.1
7.3

4.2
5.7
6.5
7.2
7.7
7.3
7.5

7.4
8.2
8.8
9.2
8.4
8.5

10.0
10.2
10.4
9.1
9.1

10.1
10.3
8.8
8.9

10.8
8.6
8.7

7.6
8.0

6.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIER i/
FEDERAL RESERVE CREDIT*/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

2.9

2.8

MULTIPLIER

2.7

2.6

1974

2,5

RATIO
2.582
2.594

2.4

2.617 2.593
2.574

0
LATEST OATA PLOTTED WEEK ENDING) MARCH

20,

1974

SILL IONS OP DOLLARS

BILLIONS OP DOLLARS

96

94

92

90

96
COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
.THE FOUR WEEKS ENDING
MARCH 27, 1974 FROM
THE FOUR WEEKS ENDING.

JAN.
DEC.
NOV.
OCT.
• SEP.
JUN.
MAR.

30
26
28
24
26
27
28

94

1974
1973
1973
1973
1973
1973
1973

FEDERAL RESERVE CREDIT

88

88

86

64

0

i-LLl.l I 11 1 II I

-I 1 1.1.1 I 1 1 I I I I I I I

3 17 31 M 23 14 28 II 23 8 23
JAN
FEB
MAR
APR
MAY

3 20
JUN

4 18
JUL

I 13 28 12 28 10 24
AUG
SEP
OCT

1973
LATEST DATA PLOTTED WEEK ENDING. MARCH 27.

1974
MILLIONS ~
Feb. 20
92,081
86
27
92,041
Mar.
6
91,033
13
91,383
84
20
91,791
27
92,368
Mil INI 1 1 1 1 1 1 1
3 18
DEC

2 18 30 13 27 |
JAN
FEB
W

1974
1974

1/ RATIO OF MONEY STOCK (Ml) / MONETARY BASE.
2/ DEFINED TO INCLUDE HOLDINGS OF SECURITIES, LOANS, FLOAT ANO •'OTHER” ASSETS, ADJUSTED FOR
RESERVE REQUIREMENT CHANGES AND CHANGES IN REQUIREMENTS DUE TO SHIFTS IN DEPOSITS AMONG
CLASSES OF BANKS.
DATA ARE SEASONALLY AOJUSTED BY THIS BANK.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

BILLIONS
209.3
211.9
209.8
212.7
211.5
211.3

FEB

7 21

4 IS

MAR

APR

2 16 30 13 27 11

JUN

25

8 22

5 IS

S 17 SI

JUL

14 28 12 20

NOV

DEC

9 23

JAN

6 20

6 20

S 17

FEB

MAR

APR

LATEST DATA PLOTTED WEEK ENDING, MARCH 20, 1974
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE

.. i__

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
3/21/73

6/20/73

7.5
5.3
4.8
5.3
5.6
4.4
4.7
5.4

0.4
0.7
2.4
3.2
2. 1
2.7
3.8

8/22/73

/ '

’■ i

9/19/73 10/17/73 11/21/73 12/19/73

1/23/74

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
8/22/73
9/19/73
10/17/73
11/21/73
12/19/73
1/23/74
2/20/74
3/20/74


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

-V-~j
-2.2
1.8
3. 1
1.5
2.4
4.0

5.5
6.2
3.3
4. 1
5.6

8. 1
3.7
4.6
6.3

1 . 1
3. 1
5.7

j ; J jj J
:.ifin
1.1
5. 1

11.1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
280

BILLIONS

271.8
274.6
272.3
275.8
275

274.5

270

265

260

4 18

2 16 30 13 27 11

25

8 22

LATEST DATA PLOTTED WEEK ENDING! MARCH 20,

5 10

3 17 31

14 28 12 26

0 23

6 20

6 20

3 17

1974

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

COMPOUNDED ANNUAL RATES OF CHANGE,
3/21/73

6/20/73

8/22/73

AVERAGE OF FOUR WEEKS ENDING:

9/19/73 10/17/73 11/21/73 12/19/73

1/23/74

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
8/22/73
9/19/73
10/17/73
11/21/73
12/19/73
1/23/74
2/20/74
3/20/74


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

7.5
5.7
5.4

5.7
6.0
5.2
5.5
6.2

1 .4
1.9
3.2
4.0

3.2
3.8
4.9

0.0
2.9
4.2
3.0
3.9

5.3

5.8
4.5

8. 1
4.8

5.2
6.7

5.6
7.2

6.6

3.3
4.9

3.3

7.1

6.7

1 1 .6

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

6

TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

TOTAL TIME DEPOSITS

NET TIME DEPOSITS*

270

7 21

7 21

4 18

FEB

MAR

APR

2 16 30 13 27 11 25

JUN

fl 22

5 18

JUL
1973

NOV

DEC
1974

LATEST DATA PLOTTED WEEK ENDING: MARCH 20, 1974
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 *100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
3/21/73

6/20/73

8/22/73

10.7
10.8
11.2
1 1.7
1 1.5
1 1.8
12.1
12.0

10.6
11.3
12.2
11.7
12.2
12.6
12.3

12.6
13.6
12.5
13.0
13.4
13.0

9/19/73 10/17/73 11/21/73 12/19/73

1/23/74

TO THE AVERAGE
OF FOUR WEEKS
ENDING-.
8/22/73
9/19/73
10/17/73
11/21/73
12/19/73
1/23/74
2/20/74
3/20/74


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

14.5
12.8
13.4
13.8
13.2

12.4
13.3
13.8
13. 1

12.2
13.3
12.5

15.2
13.6

12.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK PLUS TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
660
-= 650
-|

640

MONEY STOCK PLUS TOTAL TIME DEPOSITS
630

M

620
610

-g 600
-Jj

590

-|

580

|

570

-|

560

-|

550

-1

540

M

530

MONEY STOCK PLUS NET TIME DEPOSITS**

7 21

7 21

4 18

FEB

MAR

APR

2 16 50 13 27 11 25

8 22

5 18

3 17 31

14 28 12 26

NOV

9 23

6 20

6 20

3 17

DEC

1973

1974

LATEST DATA PLOTTED WEEK ENDINGt MARCH 20,

1974

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS1 H.6 RELEASE.
** M2 IS DEFINED AS: CURRENCY, DEMAND DEPOSITS PLUS NET TIME DEPOSITS (SEE PAGE 6).

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
3/21/73

6/20/73

8/22/73

9. 1
8.4
8.4
8.9
8.9
8.7
9.0
9.2

6.0
6.7
7.8
7.9
7.8
8.3
8.7

6.5
8.4
8.5
8.2
8.8
9.3

9/19/73 10/17/73 11/21/73 12/19/73

1/23/74

TO THE AVERAGE
OF FOUR WEEKS
ENDING:

7.9
9.3

9.5
T
t

OJ

10.3
9.2
9.9
10.3

o


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

10.3
9.8
9. 1
9.7
10. 1

o
o

8/22/73
9/19/73
10/17/73
11/21/73
12/19/73
1/23/74
2/20/74
3/20/74

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

7 21

4 18

2 16 30 13 27 11 25

8 22

5 19

3 17 31

BILLIONS OF DOLLARS

H 23 12 26
NOV
DEC

9 23

1973

6 20

6 20

3 17

1974

LATEST DATA PLOTTED WEEK END INGi MARCH 20,

1974

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS1 H.6 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF ***
100,000 OR MORE BY LARGE
WEEKLY REPORTING COMMERCIAL BANKS.


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

MONEY AND TIME DEPOSIT DATA

1974
FEB.

MAR.

APR.

6
13
20
27
6
13
20
27
3
10
17
24

CERTIFICATES
OF DEPOSIT

BILLIONS
NET TIME
DEPOS1TS *

66.8
67.0
66. 4
66.2
65.9
66.8
67. 1

306. 4
307.2
308.0
308.8
308.9
309. 0
309. 4

M2 ME
577.3
579.1
582.6
581.1
584.7
583.7
583.9

* SEE FOOTNOTE PAGE 6.
** SEE FOOTNOTE PAGE 7.
PREPARED BY FEDERAL RESERVE BANK OF ST

LOUIS

MEMBER BANK DEPOSITS
SUBJECT TO RESERVE REQUIREMENTS
CCREDIT PROXY )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
465

455
CREDIT PROXY ADJUSTED 1/
445

435
CREDIT PROXY
425

415

405

7 21

4 Ifi

2 16 30 13 27 11 25

8 22

LATEST DATA PLOTTED WEEK ENDING, MARCH 20,
CURRENT DATA APPEAR

5 IS

3 17 31

14 28 12 26

9 23

6 20

6 20

3 17

1974

IN THE BOARD OF GOVERNORS'

H.9 RELEASE.

]/ ,l,NSLUgfS MEMBER BANK DEPOSITS, BANK-RELATED COMMERCIAL PAPER, EURODOLLAR BORROWINGS OF
U.S. BANKS, AND CERTAIN OTHER NONDEPOSIT SOURCES.

1SI1

FEB.
MAR.

13
20
27
6
13
20


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

BILLIONS
CREDIT
-PROXY

CREDIT
PROXY
ADJUSTED

446.7
445.8
447. 1
450.2
448. 1
450.5

454.5
453.7
454.8
458.2
456.3
459.3

COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF THE FOUR WEEKS ENDING
MARCH 20, 1974 FROM THE FOUR
WEEKS ENDINGs
CREDIT
CREDIT
PROXY
ADJUSTED
PROXY
JAN.
DEC.
NOV.
OCT.
SEP.
JUN.
MAR.

23,
19,
21 ,
17,
19,
20,
21 ,

1974
1973
1973
1973
1973
1973
1973

4.3
7.8
6.2
5. 1
5.0
6.7
8.4

5.6
8. 4
7.0
5.6
5.4
7.4
9. 1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT

11.Or-

—

90 DAY CD’S***

h

P
COMMERCIAL PAPER

2
E

CORPORATE Aaa BONDS

PRIME BANK
Loan rate

MUNICIPAL
BONDS**

II I I I II I J

U I J 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I

2 16

2 16 30 13 27 11 25 8 22

6 20

3 17 31

FEB

MAR

JUL
1973

AUG

APR

MAY

JUN

14 28 12 26 9 23

SEP

OCT

NOV

7 21

4 18

1

DEC

JAN

FEB

15

I

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: MARCH 29,

1974
FEB.

MAR.

APR.

1
8
15
22
1
8
15
22
29 *
5
12
19
26

90 DAY
CD'S ***

PRIME
COMMERC l-AL
PAPER
4-6 MONTH

PRIME
BANKERS'
ACCEPTANCES

8.87
8.27
8.08
7.96
8.07
8.31
8.47
8.64
9.38

8.38
7.93
7.75
7.69
7.88
8.00
8. 18
8.50
9.09

8.55
7.85
7.75
7.75
7.85
8.00
8. 10
8.60
9.00

15 29 12

MAR
1974
1974

CORPORATE
BONDS

MUNICIPAL
BONDS**

7.87
7.82
7.85
7.87
7.87
7.92
7.99
8.05
8. 10

5.20
5. 16
5. 18
5.21
5.26
5.27
5.32
5. 46
N. A.

Aaa

26

APR

* AVERAGES OF RATES AVAILABLE.
** BOND BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.
*** SEVEN-DAY AVERAGES OF SECONDARY MARKET RATES FOR THE WEEK ENDING WEDNESDAY TWO DAYS
EARLIER THAN DATES SHOWN.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
N,A. - NOT AVAILABLE


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

PREPARED BY FEDERAL RESERVE BANK OF ST.

LOUIS

11.0

SELECTED SHORT-TERM

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
— M .5

rmimi

THREE-MONTH TREASURY
BILL MARKET YIELD

FEDERAL FUNDS RATE

DISCOUNT RATE

2 16

2 16 50 15 27

It

25

8 22

6 20

3 17 31

14 28

12 26

9 23

7 21

♦ 18

JAN

! 15
FEB

I

15 29 12 26

1973

1974
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING* MARCH 29, 1974

1974
FEB.

MAR.

APR.

1
8
15
22
1
8
15
22
29 *
5
12
19
26

FEDERAL
FUNDS M*

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECUR1T1ES

LONG-TERM
GOVERNMENT
SECUR1T1ES

9. 47
9. 13
8.93
9.07
8.8!
8.98
9.03
9.33
9.61

7.55
7. 03
7.06
7.07
7.36
7.71
7.82
8.06
8.30

6.94
6.74
6.70
6.76
6.93
7.06
7. 16
7. 48
7.65

6.55
6.50
6.50
6.56
6.62
6.7!
6.75
6.88
6.92

* 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.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

12
BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS
BILLIONS OF DOLLARS

1376
1251
912
984
1484
1713

of

dollars

BORROWINGS

M 26 H 2» II 25

FEB

billions

MILLIONS

1974

3 17 31

IN THE NATION

AVERAGES OF DAILY FIGURES

9 23

A 20

4 13

I

15 29 12 26 10 24

7 21

5 19

2 16 SO IS 27 13 27

MAR

LATEST DATA PLOTTED WEEK ENDINGj MARCH 27,

1974

BUSINESS LOANS

( COMMERCIAL AND

INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS
RATES OF CHANGE,'SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILL IONS OF DOLLARS

COMPOUNDED ANNUAL
,?n AVERAGE OF THE FOUR WEEKS ENDING
MARCH 20. 1974 FROM THE FOUR
WEEKS ENDING!
118
BUS I NESS
LOANS
116

JAN.
DEC.
n, NOV.
OCT.
1 10 SEP.
108 JUN*

MAR.

1974
1973
1973
1973
1973
1973
1973

23
19
21
17
19
20
21

120

15.7
15.7
14.2
10.4
7.9
11.6
14.5

BUS I NESS LOANS ADJUSTED I/

BUSINESS LOANS

1974

MILLIONS
102
BUSINESS.
BUSINESS LOANS ADJUSTED"
LOANS
-

Feb.

Mar.

XL

I I Ll -LL

XX

3 17 31

JAN

14 28 14 26 11 25

FEB

MAR

APR

J_L
4 18

1

JUN

JUL

AUG

15 29 12 26 10 24

113,545]
113,436 113,985 '
114,753 ;
115,621 .
116,969 ;

SEP

OCT

2 16 30 13 27 13 I

JAN

FEB

MAR

1974

1973
LATEST DATA PLOTTED WEEK ENDING. MARCH 20,

110,865
110,763
111,237
112,050
112,853
114,182

.111X1. LUl 1 1 1 1 1 1 1-Ll1 1 1J 1 1 XL

XX

6 20

13
20
27
6
13
20

1974

1/ INCLUDES LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS TO OWN SUBSIDIARIES, FOREIGN BRANCHES,
HOLDING COMPANIES, AND OTHER AFFILIATES.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS