Search Results

The Treasury Bill Futures Market and Market Expectations of Interest Rates - Review

Economists and other analysts seek to measure expectations of future interest rates because such expectations have important effects on economic behavior. Changes in expectations can lead to changes in economic activity, both at the level of the individual firm or consumer, and at the level of the national economy. For example, interest rate expectations enter into investment decisions of firms, portfolio decisions of financial intermediaries and other investors, and borrowing decisions of state and local governments. If these groups alter their expectations of the future level of interest rates, changes in investment, portfolio, and borrowing decisions will occur which affect not only each group individually, but which also affect the level of economic activity in the economy as a whole.

research.stlouisfed.org/.../

Federal Agency Debt: Another Side of the Federal Borrowing - Review

Disappointment in recent domestic economic performance has sparked increasing interest in the role of the federal government in the U.S. economy. As it is widely believed that government deficits contribute to inflation, much of the public concern focuses on the size of the federal budget deficit and the growth of federal indebtedness. 

research.stlouisfed.org/.../1979/11/01/federal-agency-debt-another-side-of-the-federal-borrowing

The 1975-76 Federal Deficits and the Credit Market - Review

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.

research.stlouisfed.org/.../review/1977/01/01/the-1975-76-federal-deficits-and-the-credit-market

The Federal Open Market Committee in 1977 - Review

The policy objectives of the Federal Open Market Committee (FOMC) in 1977, as repeatedly expressed in the domestic policy directive to the Federal Reserve Bank of New York, were “to foster bank reserve and other financial conditions that will encourage continued economic expansion and help resist inflationary pressures, while contributing to a sustainable pattern of international transactions.” By lowering their long-run ranges for growth of the monetary aggregates, the Committee also intended to move gradually toward longer-run rates of monetary expansion consistent with general price stability.

research.stlouisfed.org/.../review/1978/03/01/the-federal-open-market-committee-in-1977

Automatic Transfers and the Money Supply Process - Review

Since November 1, 1978, commercial banks have been permitted to offer a new type of individual savings account from which funds are transferred automatically into a checking account. This automatic transfer service (ATS) enables individual customers to earn interest on funds which previously would have been held in their checking accounts. The use of these new ATS accounts affects the payments system and the money supply process.

research.stlouisfed.org/.../review/1979/02/02/automatic-transfers-and-the-money-supply-process

TTL Note Accounts and the Money Supply Process - Review

Since November 1978, when the Treasury changed its cash management procedures, the Federal Reserve has been faced with less uncertainty in managing the week-to-week volume of bank reserves. Weekly swings in the Treasury’s balances at Federal Reserve Banks have been smaller, and the decreased volatility of these balances has reduced the Federal Reserve’s uncertainty about reserve positions. 

research.stlouisfed.org/.../review/1979/10/01/ttl-note-accounts-and-the-money-supply-process

The FOMC in 1979: Introducing Reserve Targeting - Review

Major changes in the implementation of monetary policy occurred in 1979. This article discusses these changes and summarizes the decisions of the Federal Open Market Committee in 1979. 

research.stlouisfed.org/.../review/1980/03/01/the-fomc-in-1979-introducing-reserve-targeting

The FOMC in 1978: Clarifying the Role of the Aggregates - Review

In its policy deliberations in 1978, the Federal Open Market Committee (FOMC) clarified the roles that the monetary aggregates play in policy considerations in two respects. The interpretation and emphasis to be placed on the FOMC’s two-month growth ranges of the monetary aggregates were clarified by changes in the wording of the domestic policy directive. 

research.stlouisfed.org/.../1979/03/01/the-fomc-in-1978-clarifying-the-role-of-the-aggregates

Benchmark Revisions of the Money Stock and Ranges of Money Stock Growth - Review

Weekly data on the monetary aggregates since 1973 have been revised usually three or four times each year by the Board of Governors of the Federal Reserve System. These frequent revisions are made to incorporate “benchmark” adjustments to the components of the weekly monetary aggregates that are estimated for banks which are not members of the Federal Reserve System.

research.stlouisfed.org/.../