The possible effects on credit markets of the fiscal 1975 and 1976 U.S. Government deficits were of considerable concern in late 1974 and early 1975. Projections of these deficits ran from $50 to $80 billion or more. A number of analysts outlined certain conditions under which the financing of such large deficits by Treasury borrowing would have adverse effects on credit markets, pushing short-term interest rates into the double-digit range again and crowding out private borrowing for capital formation. If these conditions developed, it was suggested that the Federal Reserve might attempt to keep interest rates from rising by increasing its rate of purchase of Government securities.