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March 1977

The FOMC in 1976: Progress Against Inflation

by Albert E. Burger and Douglas R. Mudd

The primary objective of monetary policy in 1976 was to reduce inflationary pressures while sustaining the recovery which began in early 1975. The monetary authorities expressed concern that, in an inflationary environment such as prevailed in late-l975 and early 1976, attempts to quicken the pace of economic recovery through stimulative policy actions could yield undesirable results.