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March 1973

FOMC Policy Actions in 1972

by Jerry L. Jordan

The primary policy objective of the Federal Open Market Committee (FOMC) in early 1972 was to provide sufficient monetary growth to facilitate continued real economic expansion in an environment in which administrative controls on prices and wages had been imposed. Late in 1972 the directive of the Federal Open Market Committee specified slower growth of monetary aggregates as the policy discussions indicated an increasing concern for the possibilities of re-emergence of inflationary pressures.