Total spending has continued to rise rapidly in 1969 and price increases have accelerated. Monetary and fiscal restraints have been maintained, however, and subject to the lags between policy actions and the response of economic activity, total spending can be expected to show definite indications of slowing later this year. Following a deficit of $25 billion in fiscal 1968, the Federal budget was slightly in surplus in the fiscal year ended in June, and a larger surplus is expected for the current year. The monetary base, bank reserves, and money grew much more slowly in the first half of this year and have shown little or no growth in recent months, after expanding rapidly in 1967 and 1968.