Review

In late January, the Administration announced its economic strategy for 1976 and future years. An enunciation of macroeconomic goals along with a proposed course of policy actions to achieve them is found in three documents—the Federal Budget for Fiscal Year 1977, the Economic Report of the President, and the Annual Report of the Council of Economic Advisers. These three documents present (1) Federal budget plans for the remainder of the current fiscal year and the upcoming fiscal year which begins October 1, 1976, (2) economic forecasts for calendar 1976 and 1977, and (3) a set of economic and budget projections through 1981 which place the more immediate forecasts and policy proposals in a longer-run framework of economic objectives.

An inherent risk associated with dealings in commodities is the possibility of financial losses resulting from unexpected changes in the price of the commodity. One mechanism for reducing such risks is a futures market. Last fall a futures market in mortgages began operations on the Chicago Board of Trade. In view of the volatility of mortgage interest rates in recent years, this new futures market will likely be useful to some mortgage market participants in reducing their risks from unexpected interest rate movements.