The growth of total spending continues excessive compared to the growth of the nation’s long-run output potential, but recent monetary developments give reason to expect slowing in the growth of total spending in coming months. The growth of the money supply has been substantially slower in the last five months than in 1967 and 1968. Some recent studies indicate that most of the effects on total spending of changes in the rate of monetary growth tend to be distributed over about four quarters. The growth of total spending may therefore slow to a less inflationary pace m the second half of 1969 if the recent slower rate of monetary expansion is maintained.