Source
stringclasses
1 value
Date
int64
1.98k
2.01k
Text
stringlengths
2
27.1k
Token_count
int64
1
5.57k
fomc
1,979
Shallow, long saucer.
7
fomc
1,979
Yes, shallow, long saucer. It has been said that the way to lick inflation is to have moderate growth for some period of time. 3 to 5 years or something like that. Have you done any work or do you have any views as to how long this type of pattern would have to be continued to have some impact [in the sense that] Mark ...
79
fomc
1,979
We have run a variety of simulations Using different monetary policies, fiscal policies, and other options that have extended into 1982. And in most of those, except for policies that have expansive monetary and fiscal policies for an extended period of time, by the time we got to 1982 we were seeing substantial price ...
185
fomc
1,979
Bob Mayo.
3
fomc
1,979
Jim, I have a little problem with your statement that one of the reasons the recession may be milder this time, or that we won't have a great problem this time, is that there might not be an identity this time of recession abroad and here. I would take some issue with the latter statement. Some of the tea leaves tell m...
199
fomc
1,979
Well, Bob was our clean-up hitter on this round of questions. I think it might be appropriate to turn to Steve Axilrod to give his comments on longer-run ranges and then we'll turn to the whole Committee.
44
fomc
1,979
Mr. Chairman, we are passing out a table that I hope will make my comments clear on this complicated problem facing the Committee. The decision before the FOMC on the long-run ranges is clearly much more difficult than usual. The impact on the ranges of an actual, or impending. recession has to be balanced against a hi...
1,492
fomc
1,979
Thank you, Steve. A statistical question? All right.
12
fomc
1,979
Steve or Jim, do you happen to have the 1973 and 1974 figures that would [compare with] those in the bottom part of this table for Ml and bank credit?
38
fomc
1,979
For '73 and '74? Let's all write these numbers down.
14
fomc
1,979
For '73 the rate of growth in Ml was 6.2 percent and for '74 it was 5.1 percent. Bank credit growth for '73 and '74 was 15 percent and 10.2 percent. M2 for ' 1 3 was 8.8 percent and for '74, 1.7 percent.
72
fomc
1,979
Are these fourth-quarter-to-fourth-quarter in all cases?
12
fomc
1,979
Yes.
2
fomc
1,979
One comment I should have made on the supplemental table that Jim called to your attention comparing the [forecasts of the] staff and the Administration: I know you realize all the figures here are confidential but these are particularly sensitive because they will not be released by the Administration until Friday. An...
552
fomc
1,979
Well, I'm not as well prepared as I should be, having just come back last night from Basle. I continue to think that we may be underestimating inflation. For the first three months [of this year] we didn't have very much OPEC input into this inflation and nevertheless the CPI was going up at 13 percent. Now, that was f...
544
fomc
1,979
Do you have any specifications that you--
8
fomc
1,979
Well, under those conditions, Mr. Chairman, I lean toward keeping the specifications that we have now. They may seem very low, given what--
30
fomc
1,979
What would you do for 1980 then, Henry?
12
fomc
1,979
I find that a real quandary. I am very reluctant, however, to indicate that we are going to raise the rate of money growth. We can still [change the 1980 ranges later]; we are not casting this in cement.
49
fomc
1,979
NO, we will do another [review] in January.
12
fomc
1,979
But I would be very reluctant, unless convinced by the discussion here that we should, to raise the rates of money growth.
25
fomc
1,979
So you would keep the same ones we now have for '79 and [carry them forward for] ' 8 0 ?
26
fomc
1,979
Yes
1
fomc
1,979
Thank you very much. Phil.
7
fomc
1,979
Well, Mr. Chairman, I agree with much of what Henry said. There are a couple of outside points I would like to make. Much of the discussion here has been about exogenous factors, outside influences. I still think our fundamental policy response is responsible for some of this inflation and I wish we had been tighter. A...
297
fomc
1,979
Well, you see, he cancelled his speech because he wanted to hear what the FOMC would do! Everyone was wondering what the reason was.
30
fomc
1,979
If he wants to play the game that way then I'm perfectly willing to step up to the policy [plate] and say that it's time for us to quit--not validate these things. My preferences for the '79 long-term growth ranges would be 3 to 5 percent on M1 and 5 to 7 percent on M2. I would hold bank credit down. I think it may slo...
186
fomc
1,979
Thank you, Phil. Frank.
7
fomc
1,979
Well, Mr. Chairman, as I indicated earlier, I think we're facing a bigger recession than the staff has projected, primarily because of the consumer sector. When Jim talked about the other sectors that were not as vulnerable, he neglected to suggest that we have a major sector that is more vulnerable. And that is the co...
299
fomc
1,979
Steve's proposals for both years?
7
fomc
1,979
For both years
3
fomc
1,979
Thank you, Frank. Ernie.
8
fomc
1,979
Mr. Chairman, [let me mention] a couple of elements on the economy that might be of interest. We are beginning now to see a little pickup in drilling activities, after a fairly long period of accumulating idle rigs. CHAIR" MILLER. Is this for oil or for gas?
59
fomc
1,979
It's both, but with gas being the strong end of it. And we're told by a few firms that they are making plans for a further significant step-up in that area, even to the extent that firms that normally do not own or control rigs but for the most part use leased rigs are anticipating enough shortage of supply of rigs abo...
323
fomc
1,979
Three job changes and you're in pretty good shape, aren't you?
13
fomc
1,979
It's even reached the point now where firms are considering setting up shops in residential areas so these people won't have to travel more than 5 minutes to work as compared to 20 minutes. As to the general economic outlook, [my views] don't differ substantially from what the staff has projected. I recognize the possi...
387
fomc
1,979
Thank you, Ernie. John.
8
fomc
1,979
I'm reminded of sitting here in '74 and '75 through the deepest and longest recession in the postwar period and my friend Mr. Baughman kept raising the question, "What recession?"
39
fomc
1,979
Well, it's nice to live in Dallas.
9
fomc
1,979
A s a matter of fact, we didn't feel it as badly on the West Coast as Messrs. Willis Winn and Bob Mayo.
27
fomc
1,979
It was just a regional recession
6
fomc
1,979
In any event, as far as the national outlook is concerned, despite my "doubting Thomas" type questions to Jim a little while ago, I agree that the most probable outcome is the scenario of a one-year long, fairly brief, and fairly mild recession. But if there are any risks in that, they're probably on the down side, in ...
332
fomc
1,979
Thank you, John. Mark.
7
fomc
1,979
I think Henry and Phil have put their finger on the basic decision we have to make and that is: Do we bite the bullet and really try to do something about inflation or do we get deflected by a host of other problems? I would like to assert, without taking the time to prove it--because the Committee has neither the time...
448
fomc
1,979
Thank you, Mark. Perhaps I should pause to make a couple of comments. One is that if we make any change in the ranges for '79, it would be a restatement for the whole year, fourth quarter to fourth quarter. We are not rebasing; I think everyone understands that. And my intention in dealing with ' 8 0 in our report to t...
255
fomc
1,979
I find Mark's assertion congenial and I--
10
fomc
1,979
You're not going to prove it either.
8
fomc
1,979
We are prepared to prove it.
7
fomc
1,979
Yes, I think it can be proved, but I will make the same caveat that Mark did. Although the staff forecast is a reasonable one, I find myself a little more pessimistic. I am concerned about both the likelihood of less real growth and more inflation. I really feel at this point that if we can beat 12 percent this year we...
206
fomc
1,979
I still have some confusion. For the M1 measure you said 3 to 6 percent.
20
fomc
1,979
Yes, 3 to 6 percent for '79 or 3 to 5-1/2 percent --I wouldn't quarrel with that.
30
fomc
1,979
Why not 1-1/2 to 4-l/2 percent? That's what it is now.
22
fomc
1,979
He's adjusting it for ATS.
6
fomc
1,979
I'm adjusting it.
4
fomc
1,979
That's what I had in mind.
7
fomc
1,979
I am talking about the second line in the material distributed--the "M1 measure," as it is called here.
24
fomc
1,979
For '79, it's 1-1/2 to 4-1/2 percent now.
21
fomc
1,979
It's 1-1/2 to 4-1/2 now and it would be 3 to 6--
25
fomc
1,979
For '79.
4
fomc
1,979
You said leave it unchanged, and then you said you would--
13
fomc
1,979
Well, that's [no] change. It's the way Steve has it down here.
17
fomc
1,979
I was interpreting such a move as unchanged because the midpoint remains 6 percent after [adjustment] for ATS.
23
fomc
1,979
And that's the way I am looking at it--through the old ATS.
15
fomc
1,979
You are accepting the upward adjustment in the average.
10
fomc
1,979
Sure.
2
fomc
1,979
But 3 to 6 and not 3 to 5-1/2 percent.
19
fomc
1,979
I prefer the 3 to 6 percent, but I find that a minor point of difference. Now, since we are required to go out to 1980, I would say that if 3 to 6 percent is okay for '79, intellectually the range should be something like 2 to I percent for ' 8 0 because [it seems logical to1 widen the band. But I find this insulting t...
200
fomc
1,979
Thank you, Bob. Roger.
7
fomc
1,979
Thank you, Mr. Chairman. First of all, I think it's perhaps difficult to quarrel with the staff projection for the economy. But our independent look at the same figures they apparently are looking at--with some of the assumptions different, however--would suggest that we may have a bit less strength in the economy than...
348
fomc
1,979
Thank you, Roger. Larry.
7
fomc
1,979
Yes sir, Mr. Chairman. I find this an extremely interesting exercise because we are looking ahead and we are trying to function on a longer-term basis. I also find most interesting the handout from the staff on past and prospective rates of growth in the monetary aggregates. And I think those figures, to a great extent...
317
fomc
1,979
I didn't realize I had said that.
8
fomc
1,979
Well, I thought earlier that you--
8
fomc
1,979
I thought I said it would put us back by adding to inflation; we start from a higher base.
21
fomc
1,979
Well, all right. Specifically, I believe that inflation is still our most serious problem. If we are able to signal to the world that we are determined to do something about inflation, I think that will have a very real and salutary effect on our dollar exchange problem. I think it will stimulate much needed capital in...
225
fomc
1,979
Bones.
2
fomc
1,979
Mr. Chairman, several segments of the economy in our District are reflecting unusual strength. But I think the composite would come out not significantly different from that described in the other [Districts] and as envisioned by the staff. If anything, we are impressed by both bankers and businessmen in their escalati...
183
fomc
1,979
Thank you very much. Dave.
7
fomc
1,979
My guesses on the economy are about the same as the staff's. The exception is that it's my sense that the staff may have underestimated the fiscal stimulus that might be coming along. In that context, I think the statement to the Congress should reaffirm our intention to move the monetary growth rates down in a consist...
90
fomc
1,979
Thank you, Dave. Willis.
7
fomc
1,979
I haven't any quarrel with the staff's projections and I have only two comments on that. One is that the continuing inflation may force greater financial problems for some of our public bodies--schools, cities, and so forth--and we may get some reactions in that area that aren't really factored into the formula. Second...
299
fomc
1,979
Thank you, Willis. Bob Black.
8
fomc
1,979
Mr. Chairman, for some months we have felt that a turning point was near and I think we would buy what seems to be the consensus forecast, or the assessment that we have passed that point. So far as severity is concerned, I think the developments in the petroleum market do strongly enhance the possibility that this cou...
658
fomc
1,979
Thank you, Bob. Emmett.
8
fomc
1,979
Mr. Chairman, consistent with my tenure on the Board, I will be brief. Generally, I agree with the projection of the staff: it seems to me that almost all of the data now point to a recession. I would expect a more serious recession than the staff seems to expect. I believe the effect of inflation on household balance ...
299
fomc
1,979
Current ranges?
3
fomc
1,979
Yes, the current ranges. That was alternative B, I believe, in the Bluebook. However, for 1980, I find it hard to imagine that we would want to follow a more restrictive monetary policy in a situation of recession than we followed when we were resisting inflation in a booming economy. I would prefer to see us be prepar...
165
fomc
1,979
Thank you. Nancy.
5
fomc
1,979
Well, on the long-run ranges, I don't have any trouble accepting the staff's projection as long as we adjust them for ATS. If we stick to 1-1/2 to 4-1/2 percent, that implies a tightening short-run monetary policy and I don't think we need that at all at the present time. So, I strongly favor adjusting the MI [range] t...
256
fomc
1,979
Thank you, Nancy. Chuck.
7
fomc
1,979
Well, I think we ought to hold with our current ranges for 1979 in a rather strict sense. And I think we ought to say that we are adjusting them simply for our changed ATS estimate. As I understand it, [that estimate] is down from about 3 percent to about 1-l/2 percent. And I would state that in the document. I'd say t...
681
fomc
1,979
You're not talking to the market?
7
fomc
1,979
Yes, but we are going to be talking publicly here about our projections for 1980 and I just think it would alarm the market. I would rather do it in January when, in fact, we could see how deep the recession is likely to be.
52
fomc
1,979
Thank you, Chuck. Paul.
7
fomc
1,979
Well, let me be very quick on the business side. A lot of people have talked about the risks of a recession, and I think they are there. There are also some risks of financial disturbances arising perhaps out of some nonfinancial companies. I think there are risks in the balance of payments and on the dollar side. I ju...
432
fomc
1,979
It's not a [matter of substance]; it's a measurement [issue]. It's [how it is] measured.
22
fomc
1,979
Well, it's measurement. But I have this feeling that this is [only] one technical factor affecting the measurement of M1. Meanwhile, money market funds payable by check are going up $ 3 billion a month, which nobody anticipated at the beginning of the year and must have had a bigger effect on M1 than ATS. Well, it must...
81
fomc
1,979
May.
2
fomc
1,979
I think it has almost none on transactions balances.
10
fomc
1,979
Well, you ought to talk to my wife. But you know, there are other factors--RPs and other things that Henry mentioned. And it just seems to me a mistake to react to this one technical factor at the risk of confusing people, when the basic message we want to give is: We have looked at our targets, we are within our targe...
256