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February 1967

Changing Credit Conditions


A great change has occurred in credit conditions in the past two or three months. Time and savings deposits in commercial banks and other financial intermediaries have risen significantly; the nation’s money supply has stopped declining; most interest rates have declined sharply; and credit has apparently become more readily available. These developments may be most appropriately appraised by comparing recent experience with somewhat longer-run trends and by considering changes in specific factors underlying expansion of money and credit, such as Federal Reserve actions.