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.

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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 Growing Link Between the Federal Government and State and Local Government Financing - Review

The growth of the state and local government sector and its increasing reliance on Federal revenues warrant consideration in discussions of stabilization policy. State and local government expenditures and taxes have been growing rapidly in recent decades, both absolutely and relative to that at the Federal level. In addition, grants-in-aid from the Federal Government have become an increasingly important source of funds for state and local governments.

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Operations of the Federal Reserve Bank of St. Louis—1976 - Review

As the central bank of the United States, the Federal Reserve performs three basic functions: the implementation of monetary policy, the supervision and regulation of member banks, and the provision of various services to the public, the U. S. Treasury, and commercial banks. These operations are conducted through the 12 regional Federal Reserve Banks located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. In addition, 25 branches of the 12 regional banks perform similar functions in territories served by such branches. The Eighth Federal Reserve District is served by the head office in St. Louis and branches in Little Rock, Louisville, and Memphis, and covers a region which includes the state of Arkansas and parts of Illinois, Indiana, Kentucky, Mississippi, Missouri, and Tennessee.

research.stlouisfed.org/.../1977/02/01/operations-of-the-federal-reserve-bank-of-st-louis1511976

Capital Accumulation and the Federal Reserve System - Review

It is a real pleasure to be here as a co-sponsor, along with Murray Weidenbaum and the Center for the Study of American Business, of this important meeting on capital formation. I must admit to a certain feeling of apprehension in attempting to deal with a subject of this complexity in the company of so many distinguished members of the academic community. As president of a Federal Reserve Bank, I think it appropriate that I direct my remarks to the role of the Federal Reserve System in the process of capital accumulation. Although the Fed is usually viewed as playing a relatively minimal part in that process, some of our actions in monetary policymaking do have significant long-term effects on capital accumulation.

research.stlouisfed.org/.../review/1977/06/01/capital-accumulation-and-the-federal-reserve-system

Utilization of Federal Reserve Bank Services by Member Banks: Implications for the Costs and Benefits of Membership - Review

The proportion of commercial banks belonging to the Federal Reserve System has been declining for more than three decades. The percentage of banks in the Federal Reserve System decreased from 49.1 percent of all commercial banks in 1945 to 39.3 percent at the end of 1976. The percentage of total bank deposits held at Federal Reserve member banks declined from 86.3 percent to 73.8 percent over the same period.

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Capital Formation and U.S. Economic Performance - Review

Three years ago the physical capacity, supply of labor, and financial resources of the U.S. economy were insufficient to satisfy demands. Symptoms of these capital shortages included sharply rising prices, peaks in factory operating rates, increased unfilled orders, long delivery delays, higher wages, low unemployment rates, rapidly accelerating interest rates, widening yield differentials between risky and “safe” financial assets, surging loan demands, decumulation of financial assets, and credit rationing. Indeed, the unprecedented inflation of prices, wages and interest rates was the principal cause of the deep recession that followed.

research.stlouisfed.org/.../review/1977/06/01/capital-formation-and-u-s-economic-performance

Income and Expenses of the Eighth District Member Banks - Review

Member banks of the Eighth District experienced a moderate increase in net income in 1976. Net income of District member banks increased 9 percent from 1975 to 1976, about the same rate as it did the previous year. However, unlike 1975 in which operating income and expenses posted slight gains, both operating income and expenses registered increases exceeding ten percent in 1976. Loans outstanding, the major factor contributing to the higher income, posted a solid increase, after rising slightly in 1975. Increases in the amount of interest paid on deposits, the principal factor in the rising expense, reflected a large inflow of time and savings deposits.

research.stlouisfed.org/.../1977/08/01/income-and-expenses-of-the-eighth-district-member-banks

The Growing Similarities Among Financial Institutions - Review

Depository financial institutions are able to exist because of certain efficiencies which allow them to provide credit to borrowers at lower rates and higher net returns to depositors than would he available without such intermediaries. These efficiencies, combined with nationally mandated priorities concerning the roles of these institutions in society, have produced institutions which are specialized in scope. Despite some efforts to maintain this specialization, financial institutions are forming a new framework within which to operate. By creating and reacting to competitive challenges, financial institutions are breaking away from their specialized roles and successfully altering traditional distinctions.

research.stlouisfed.org/.../1977/10/01/the-growing-similarities-among-financial-institutions

Estimates of the High-Employment Budget and Changes in Potential Output - Review

One of the more novel approaches to the problem of assessing the impact of the Federal budget on economic activity was the development of the concept of the high-employment budget. The purpose of this concept was to standardize the budget position on some high-employment norm amid thereby remove the effect of variations in economic activity on the measured budget surplus or deficit. Proponents of the high-employment budget argue that estimation of the Federal budget at an assumed full—employment level of activity provides a better measure of tile impact of the budget on the economy than the actual surplus or deficit.

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