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F//V ^ /VCT//1 L

&£DJi£

O

jCKT

X\

Week ending: November 21, 1979

riiacJAD^Ioney market certificates (MMCs) issued by commercial banks more than
^ fc.lt30WtMrsdIring the first nine months of 1979. MMCs at commercial banks — time
__ deposits of $10,000 or more with maturities of six months — are included in net time
"UT
mai°r component of M2. The maximum rate payable on MMCs is
linkedMSwthe interest rate on newly issued six-month Treasury bills and, unlike the
rate on ordinary passbook savings and other time deposits, may fluctuate with
market forces. Consequently, as market interest rates have continued to increase in
1979, MMCs have grown at a faster rate than other time deposits. As shown in the
table below, MMCs at commercial banks have constituted a rising share of net time
deposits. By the end of October MMCs accounted for over 16 percent of net time
deposits.
As a result of this rapid growth in MMCs, net time deposits have grown at
a rapid pace, while growth of the demand deposit component of the money supply
has slowed (pages 8 and 9). Consequently, while both Ml and M2 exhibited somewhat
slower growth in recent weeks, the slowing of Ml growth has been more pronounced
(pages 4 and 5).
Another type of time deposit also rose sharply over the past few months.
Negotiable certificates of deposits (CDs) of $100,000 or more are not subject to
interest rate ceilings, but, unlike MMCs, are not included in either Ml or M2. After
declining sharply in the first half of the year, these large CDs have increased
steadily since the end of July (page 12).
MONEY MARKET CERTIFICATES AND
NET TIME DEPOSITS AT COMMERCIAL BANKS
(Billions of Dollars)

MMCs

Net
Time
Deposits

MMCs as a
Percentage of Net
Time Deposits

$ 31.9

$ 515.4

February

36.0

518.1

6.9

March

41.2

520.6

7.9

April

48.5

525.6

9.2

May

56.3

529.4

10.6

June

59.3

535.4

11.1

July

63.2

541.9

11.7

August

71.8

548.3

13.1

September

76.2

554.1

13.8

October

90.2

557.2

16.2

January


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

6.2 %

Prepared by Federal Reserve Bank of St. Louis
Released: November 23, 1979

2

ADJUSTED MONETARY BASE
averages of daily figures

BILLIONS OF DOLLARS
_____ —------ -----------1 160

SEASONALLY ADJUSTED BY THIS BANK
BILLIONS OF DOLLARS

160

------ r-------- 1--BILLIONS
OCT.

17

152.6
152.5
152.7

_ NOV.
_

153.1

4^ 18

OCT

1

15 29

NOV

13 27

DEC

10 24

FEB

16 30 13 27

7 21

JAN

MAR

APR

JUN

MAT

11

25

8 22

5 19

3

17 31

M 28

NOV

JUL

12 26

DEC

1978
LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 21. 1979
J^Cu!Sf IN®* IRCULA?! 0NS. cUeNCYMH|Ld'’|

RflPSMWiimHi
BY THIS BANT..

«

.....................

DATA DO NOT INCLUDE REGULATION K RESERVES OF EDGE ACT CORPORATIONS.
ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,
,,722/78

AVERAGE OF FOUR WEEKS ENDING:

2/21/79

4/18/79

5/23/79

6/20/79

5. 1
5.9
7.2
7.7
8.7
9.0
8.7

7.8
9.5
9.5
10.6
10.7
10. 1

10.7
10.3
1 1 .6
11.4
10.6

11.1
12.6
12. 1
11.0

7/18/79

8/22/79

9/19/79

TO THE AVERAGE
OF FOUR WEEKS
END 1NG:
4/18/79
5/23/79
6/20/79
7/18/79
8/22/79
9/19/79
10/24/79
11/21/79

5.5
5.9
6.2
7.0
7.3
8. 1
8.4
8.2


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

12.3

1 1.8
10.5

13. 1
10.9

8.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

RATIO
2.9

RATIO
2.9

MULTI PLIER

2.6

w—**>v/

1979
OCT •

RAT 1C

1?

24
. H
'

2.47

m

NOV
14

!lll -LJ 1 1 -LLL.

ini

111 -LLL

111 11111

2.48^

1 1 1 1 1 1 1 1 1

-LLL .1.1 1 J-LLL -Li-L.

LATEST DATA PLOTTED WEEK ENDING-. NOVEMBER 14,
BILL IONS OF DOLLARS
138
1
1
136
134

COMPOUNDED ANNUAL RAT ES
-----OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
“ NOVEMBER 21, 1979 FRO M
___THE FOUR WEEKS ENDING
-

132
130

BILLIONS OF DOLLARS
138

1

SEP.
AUG.
“JUL.
_
JUN.
MAY
i.

NO Vi

19,
22,
18,
20,
23.
221

1979
1979
1979
1979
1979
i 978

136
134

A zr

12.0
13.3
13.2
13.2
11.7

ADU USTED FEDERA L RES ERVE

132

:redit
-

130

9.4
-

r
v~

128
126

128

^

%

—-

126

8 ILLIQNg

124

124

' 1
-

l
979

OCl .

122

NOV .
120
1 II 1
NOV
1978

.in. llll
DEC

mi

7 21
FEB

111
7 21
MAR

iii... -LLLL .ILL -LLL ini
8

APR

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 21,

MAY

JUN
JUL
1979

AUG

111

17

§?

33:8

-

7
14
21

LllllI
3 17 31

OCT

120
i i i l i i i!
14 28

NOV

12 26

DEC

1979

1/ RATIO OF MONEY STOCK (Ml ) / ADJUSTED MONETARY BASE
2/ FEDERAL RESERVE CREDIT CONSISTS OF FEDERAL RESERVE HOLDINGS 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 C0MPUTE6 BY THIS BANK.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

122

4

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
AVERAGES OF DAILY FIGURES
SEASONALLY AD JUS ILL)

BILLIONS OF DOLLARS
965
960

BILLIONS OF DOLLARS
---------------------------- =q 965

ILLIONS

955

939.6
938.7
937.0
937.8
E" NOV

1

15 29 13 27 10 24

4

7 21

FEB

MAR

IS

2

16 30 13 27

JUN

APR

11

25

8 22

5 19

3 17 31

4 29

NOV

JUL

12

DEC

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 14, 1979
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
COMPOUNDED ANNUAL RATES OF CHANGE,
11/15/78

2/14/79

4/11/79

5/16/79

8.0
8.4
9.5
10. 1
10.4
10.6
10.0

1 1.4
12.3
12.3
12.3
12.3
11.3

12.1
12.2
12.2
12.2
1 1 .0

AVERAGE OF FOUR WEEKS ENDING:

6/13/79

7/11/79

8/15/79

9/12/79

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/11/79
5/16/79
6/13/79
7/11/79
8/15/79
9/12/79
10/17/79
11/14/79

3.0
4.8
5.5
6.5
7.2
7.7
8. 1
7.8


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

12.3

12.2

12.2

10.5

9.8

8.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK (Ml )

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
------------------------------- 390

390 --------- 1--------—,
gllLIQN?

380.5
378.7
376.2

379.5
378.5

111 1 I I 1 I
I

OCT

15 29 13 27

NOV

DEC

11.1 1 I I I

10 24

7 21

7 21

4

JAN

FEB

MAR

APR

18

2

16 30

13 27

11

25

8 22

MAY

1978

5

19

3 17 31

14 28 12 28

NOV

DEC

1979

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 14,

1979

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

MONEY STOCK I Ml )
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:

11/15/78

2/14/79

4/11/79

5/16/79

-0.4
2.5
3. 1
4. 1
4.7
5.2
5.6
4.8

7.1
7.2
8. 1
8.2
8.5
8.6
7.2

1 1.9
1 1.9
1 1.0
10.9
10.6
8.5

9.8
9.3
9.6
9.5
7.2

6/13/79

7/11/79

8/15/79

9/12/79

9.4
9.3
6.0

9.8
5. 1

2.8

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/11/79
5/16/79
6/13/79
7/11/79
8/15/79
9/12/79
10/17/79
11/14/79


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

10.0
10.2
9.9
7. 1

PREPARED BY FEDERAL RESERVE BANK OF ST,

LOUIS

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
16.5 pr
16.0

PERCENT
16.5

—

15.0

15.0

14.0

14.0

PRIME BANK
LOAN RATE

I 1 .0
90 DAY CO* Si
COMMERCIAL PAPER
CORPORATE Aaa BONDS

MUNICIPAL
BONDS**

6 20

3 17

I

13 20 12 26

0 23

0 23

6 20

4 18

APR

I

15 20 13 27

10 24

5 10

2

16 30

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENOING: NOVEMBER 23,

OCT.

NOV.

DEC.

1979

90 DAY
CD* S «8HK

1979

14 28

MAY

PRIME
COMMERCIAL
PAPER

PRIME
BANKERS'
ACCEPTANCES

CORPORATE
Aaa BONDS

MUNICIPAL
BONOS X*

12.01
12.75
13.61
14.37
14.44
14.52
14.29
14.05

11.76
13. 18
13.32
14.10 1(
H. 18#
14. 18
13.70
13.51

12.04
13.49
13.59
14.32
14.11
14.20
13.72
13.60

9.66
9.91
10.09
10.50
10.73
10.83
10.75
10.83

6.64
7.12
7.18
7.38
7.26
7.27
7.31
N. A.

5
12
19
26
2
9
16
23 X
30
7
14
21
28

AV^^CF^oSW? MARKETPRATESlFOft TlTwEEK ENOING WEDNESDAY TWO DAYS
EARLIER THAN DATES SHOWN.

#

'

Beginning November 1 , 1979, data are 4-month comme/'Cia! paper >a-.Ts.


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 cr

PERCENT
-a >6.0

15.0

15.0

14.0

14.0

13.5
13.0

13.0

12.0

11.0

1 I .0

FEDERAL FUNDS RATE
10.0

10.0

I
DISCOUNT RATE

TREASURY SECURITIES

THREE-MONTH TREASURY
BILL MARKET YIELD

I I I I
I

15 29 12 26

JAN

9 23

B 23

6 20

4

18

FEB

1978

>979

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: NOVEMBER 23.

FEDERAL
FUNDS K*

1979
OCT.

NOV.

DEC.

1979

5
12
19
26
2
9
16
23 *
30
7
14
21
28

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL K98i

1-YEAR
TREASURY
BILL

3-5 YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

11.91
12.00
13.22
15. 14
15.61
13.77
13.30
13. 10

10.43
1! .62
11.91
12.60
12.07
12.25
11.90
11.91

10.33
10.66
11.72
12.65
12. 19
12.09
11.95
12.04

10.07
11.30
11.40
11.94
11.65
11.66
11.12
11.37

9.72
10.48
10.79
11.57
11.43
11.36
10.97
11.19

9.31
9.77
9.99
10.36
10.36
10. 47
10.34
10.36

■WAslvENhDAYFAVERAGESVFORAWEEK ENDING WEDNESDAY TWO DAYS EARL IER THAN DATE
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
LONG-TERM TREASURY SECURITIES ARE COMPUTED BY THE FEDERAL RESERVE

pSjES^ON *

SHOWN.
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

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

BILLIONS OF DOLLARS
580 rz——I-----------1------

1979

ILL IONS OF DOLLARS

-------- ---- =1

SllLIQNS
559.2

560.2
561.7
562.9
565.0

1

15 29

13 27

10 24

7 21

FEB

2

MAR

16 30 13 27

1!

25

B 22

5

19

3

17 31

APR

14 28

NOV

12 26

OEC

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 14, 1979
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.

'TAnAT

Ai .i'l-VJTN,G.So,Ii:EF-.0,SLTS^JIMe

rFRTIF*!i.9£Te.s..0l.d!?9? 1 I_Qther °tu
DEPOSITS OPEN ACCOUNT PLUS TIME
£!F.Ii.l. rATFAra?
than negotiable time certificates of deposit issued in
DENOMINATIONS OF 1100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
1/15/78
2/14/79 4/11/79 5/16/79 6/13/79 7/11/79 8/15/79 9/12/79
TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/11/79
5/16/79
6/13/79
7/11/79
8/15/79
9/12/79
10/17/79
11/14/79


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

5.4
6.4
7. 1
8. 1
9.0
9.4
9.9
10.0

8.6
9.3
10.5
11.4
1 1.6
12.0
12.0

1 1 . 1
12.6
13.3
13.3
13.5
13.2

13.7
14.2
14.0
14. 1
13.7

15.5
14.8
14.7
14. 1

14.3
14.4
13.7

14.0
13.1

13.0

PREPARED BY FEDERAL RESERVE BANK OF ST.

LOUIS

580

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUS 1tU

BILLIONS OF D0LLAR5
285 ---------- ,------------- 1------

BILLIONS OF DOLLARS
------------------------------- 285

BILLIONS.
275.1
273.5

271 ‘.6

270.6
273.5
272.7

NOV.

1

15 29 13 27

10 24

2 16 30 13 27

7 21

FEB

MAR

JUN

APR

LATEST DATA PLOTTED WEEK ENDING-. NOVEMBER 14.

11

25

8 22

5

!B

3

17 31

!4 28

12

JUL

1979

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

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
COMPOUNDED ANNUAL RATES OF CHANGE ,

AVERAGE OF 1

11/15/78

2/14/79

4/11/79

5/16/79

' 6/13/79

-3.7
0.2
1 . I
2.4
2.9
3.5
4.0
3.0

6.9
6.9
8. 1
7.8
7.9
8.0
6.2

13. 1
13.2
1 1 .3
10.9
10.5
7.8

10.0
8.6
8.7
8.7
5.8

9.5
9.3
9.2
5.7

7/11/7!

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/11/79
5/16/79
6/13/79
7/11/79
8/15/79
9/12/79
10/17/79
11/14/79


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

7.5
8.0
4.0

8.9
3. 1

0.6

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

10

CURRENCY COMPONENT
OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

LLIONS OF DOLLARS

BILLIONS OF DOLLARS
-------- ---------------------- I 10

1LL.!QN$
05.2
105.2
105.6
105.9
105.8

1

15 29

13 27

10 24

7 21

FEB

4

MAR

18

2

16 30 13 27

APR

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 14,

II

25

8 22

JUN
JUL
1979

NOV

DEC

1979

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

CURRENCY
COMPOUNDED ANNUAL RATES OF CHANGE,
11/15/78

2/14/79

4/11/79

9.0
8.7
9.0
8.9
9.5
10.0
10.0
9.7

7.5
8.3
8.2
9.3
10.0
10. 1
9.6

9.0
8.7
10.2
1 1.0
10.9
10. 1

5/16/79

AVERAGE OF FOUR WEEKS ENDING:

6/13/79

7/11/79

8/15/79

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/11/79
5/16/79
6/13/79
7/11/79
8/15/79
9/12/79
10/17/79
11/14/79


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

9.4
1 1 .2
12.0
11.7
10.6

1 1.3
12.4
I 1.8
10.6

14.4
13.0
11.2

12.4
10. 1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MFMBER BANKS

IN THE NATION

' AVERAGES OF DAILY FIGURES

billions of dollars

----------------------4.0

—

4.0
Z
3.5

1979

~ OCT. 17
Z
24
—
31
Z NOV.
7
14
21

3.0
2.5

E

MILLIONS
1530
2960
3056
1928
1858
1 965

h
J-

E
V

v-

1 .0
z
0.5

1 1,1-L

1 LLL _LLL
NOV
1978

DEC

JAN

—A-

1____

1 1 1

i

11

111

FEB

MAR

APR

111

II11
MAY

LATEST DATA PLOTTED WEEK ENDING-. NOVEMBER 21,

E

4

4

r

1 .5

E

V

JUN
JUL
1979

2.0

z

\

111

2.5

E

J J-

Lz

/

J

^

_UJ
18
OCT

3.0

4

2.0
1.5

3.5

z

E

1 1J_L J_U
AUG

1 1 1

SEP

OCT

0.5

_LLL

NOV

1 LI.L

1.0

DEC

1979

BUSINESS LOANS

(COMMERCIAL AND INDUSTRIAL)

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED
158
156
154
152
150
148
146

BILLIONS OF DOLLARS
158
156
154
-'S /
V-----152
-------- 1
\
150
148
146

1

---------- 1----i
” COMPOUNDED ANNUAL RATE
OF CHANGE. AVERAGE OF
“ THE FOUR W EEKS ENDING
— NOVEMBER 1 4, 1979 FROM
— THE FOUR W EEKS ENDING:
I" SEP. 12, 1 979
6.2
11.0
— AUG. 15, 1 979
15.8
_ JUL. 1 1, 1 979
17.0
_ JUN. 13, 1 979
17.6
MAY 16, 1 979
19.4
FEB. 14, 1 979
16.9
— NOV. 15, 1 978

pL
/

/

144

144
142
140
138
136
134
132
130

-

_
Y

_

-

7

_

136

—

_

1979

M1LL1

134
132

—

128
126

142
140

_

—

!!lll

0
OCT

i i i i

J.IL

III!

1 1 1

1 1 1

111

INI

NOV

DEC

JAN

FEB

MAR

APR

MAY

1978
LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 14,


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

1 1 1

1 1 1

JUN
JUL
1979

Mil

53,092
OCT. 10
51,474
—
17
51,882
24
152,596
31
151,765
NOV. 7
151,070
14
....................................ini
SEP

OCT

NOV

DEC

1979
PREPARED BY FEDERAL RESERVE BAI* OF ST. LOUIS

11

130
128
126
0

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

BILLIONS OF DOLLARS

ILL IONS OF DOLLARS

I 12
1LL1QNS.

110
108
106
104

102
100

82
80

0
LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 14,
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’

1979
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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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