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fomc
1,993
I've expressed it--
4
fomc
1,993
This part of the meeting would be open, for example. This isn't monetary policy, is it?
20
fomc
1,993
Well, I think--
5
fomc
1,993
Well, but are we deliberating something?
9
fomc
1,993
Oh, okay.
4
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1,993
Just because you grant him access to [the Secretariat's records of] the October 15 meeting doesn't mean you have to grant him access to other meetings of the FOMC, either the monetary policy part or something else.
45
fomc
1,993
That's the part that worries me about it.
9
fomc
1,993
Well, that's the down side of it.
9
fomc
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I think it's a good gamble to try this ploy and hope that the presence of other witnesses who will see the whole thing more objectively and be able to defuse any attempt to take pieces out of context will be advantageous. I think that's a very good strategy to pursue. I would support your recommendation, Mr. Chairman.
65
fomc
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Thank you. President Hoenig.
7
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Two questions, Mr. Chairman. Number one: Your proposal would have other members of the Committee or their senior aides coming over as a condition for individuals from Chairman Gonzalez's group coming over? In other words, these others have to be included--
49
fomc
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Well, obviously, he can not stop us from making those materials available to other people.
18
fomc
1,993
Right.
2
fomc
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If he decides that he will not participate under those conditions, we may choose to go forward without that participation.
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I want to make sure that something doesn't occur where just they come over and look at it themselves.
20
fomc
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I would say that would be a mistake.
9
fomc
1,993
I agree it would be, so I'd feel much more comfortable with your proposal knowing that there have to be other individuals there. The second question is: Not that my memory is that short, but is there a possibility that we can take a look at those parts of the transcript where we had conversations ourselves so that if w...
74
fomc
1,993
Yes, check with Don and he will--
9
fomc
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In that case I would support it.
8
fomc
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President Forrestal.
4
fomc
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Mr. Chairman, I suppose there's no question that these other people would be willing to come, is there? I would assume that they will.
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fomc
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I don't think there's any problem.
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fomc
1,993
Well, you said it very well earlier. It is very disagreeable and distasteful that we have to go through this--and perhaps this is overstating it--but I think it's almost a necessity that we take this kind of step. Look, we're not going to resolve this issue by doing this. Mr. Gonzalez and his staff are going to keep af...
335
fomc
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President Parry.
4
fomc
1,993
Mr. Chairman, I support your recommendation. I do have two questions. If we were to deny access, how likely in your mind is it that Chairman Gonzalez would try to get his Committee to issue a subpoena? And secondly, how likely is it that he'd be successful since this isn't a monetary policy issue and is probably viewed...
88
fomc
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Remember that the accusation will be [that we engaged in] some form of conspiratorial action. And those members of the Banking Committee who might disagree with the Chairman will nonetheless feel obligated [to investigate] in the circumstance where there's an accusation of this nature and we refuse to release the evide...
106
fomc
1,993
First of all, I think we need to go ahead and do this but let me just ask a couple of questions. I understand the logical basis for making a distinction between this conversation and monetary policy deliberations. Is there a legal basis?
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fomc
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Yes, I think so. I think the Committee has the right to maintain the confidentiality of its deliberations and also has the right to make an exception on occasion when it believes that is warranted. And that's what we're doing here. In the face of the allegations that have been levelled at the Committee, suppose you dec...
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fomc
1,993
So there is a legal basis.
7
fomc
1,993
I believe there is, yes.
7
fomc
1,993
Okay. I just would be inclined in whatever letter you send back to spell out the precedent issue very clearly. In other words, say that we don't view this as precedent-setting with respect to providing tapes and transcripts. I think that would be a helpful part of the letter. Another legal question: As I recall that ca...
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fomc
1,993
Yes, it can. But you're giving up your right to keep all of that confidential when you let Henry Gonzalez look at it. On this particular matter, you're correct.
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fomc
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Okay. Then just one final observation: I personally think we need to do this. I do agree with what Susan was saying before--that this will be the basis for singling out individuals and criticizing them and it won't be the end of it. I think we have to try it but, just following Tom's suggestion, we need to be prepared ...
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fomc
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I have a follow-up question to Virgil. The Chairman made a distinction, I made a distinction, and others have also between discussions of monetary policy and discussions of other matters. But as a legal precedent all we're saying is that we are giving them access to this particular tape; and that doesn't give them acce...
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fomc
1,993
That's my view, yes.
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Okay.
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fomc
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President Stern.
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I can support your recommendation, although it seems to me that the real reason for doing this is that it will provide some comfort to our friends that we've gone ahead and taken this step toward openness. I think your suggestion to have people from Mr. Kanjorski's staff and Mr. Leach's staff is a good one. I'm wonderi...
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fomc
1,993
I do not get the impression that he wants to give me a forum to rebut [these accusations]. I've requested it on many occasions and have gotten no response. President Boehne.
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fomc
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On balance I support your recommendation.
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fomc
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President McTeer.
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fomc
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A small comment and a couple of questions. I also was wondering if maybe three people to do this might not be too small a number and I'd urge you to consider a way to make it a larger number.
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fomc
1,993
Well, in view of Susan's remarks, she may have pinpointed the fact that there are not enough to get the critical mass of objectivity.
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fomc
1,993
Right. And have you given thought to releasing it to the press?
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fomc
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I would be disinclined at this stage to do that. I say "at this stage" because it's a lot of material for people to start publishing and because we're considered highly visible people. We may have to go in that direction; I don't deny that. I would just as soon do that as a second step.
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fomc
1,993
Well, that leads me to another question and that is: When this is made available to them, shouldn't we get a copy of the transcript ourselves? We'll be making available to them something that we haven't had made available to us.
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fomc
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He's your congressman. Can't you ask him? [Laughter]
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fomc
1,993
The answer of course is yes, obviously.
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fomc
1,993
I know that you might want to talk more about this next month than now but what happens if between now and the next scheduled meeting we get a fax from that Committee that asks for something and also asks us not to communicate with each other. That has happened and we were left totally isolated, not knowing who was doi...
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fomc
1,993
Well, I think that's an abridgment of the first amendment myself.
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fomc
1,993
I wish somebody had called and said that--had said "Feel free to talk to your colleagues." I feel there was a breakdown.
27
fomc
1,993
Well, let me just say this. I think you're quite right. That type of request is inappropriate, for a long series of reasons, which I think should be self evident mostly.
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fomc
1,993
I declined to make notes available and I worried that I was the only person who was going to decline.
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fomc
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President Boehne.
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fomc
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I've already commented.
4
fomc
1,993
I'm sorry.
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fomc
1,993
Did you change your mind?
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fomc
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No. [Unintelligible.]
8
fomc
1,993
Sorry about that. He didn't say very much but it was eloquent.
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fomc
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Direct correlation.
3
fomc
1,993
It made a great impression! [Laughter]
10
fomc
1,993
Well, if no one else wants to comment, I take the general conversation as an affirmation of our going forward with this, and I will report back to you as soon as feasible on the outcome of this issue.
43
fomc
1,993
We don't require a vote?
6
fomc
1,993
I don't think we need it.
7
fomc
1,993
I don't think it's necessary.
6
fomc
1,993
It's the sense of the Committee.
7
fomc
1,993
We don't need a vote.
6
fomc
1,993
Our next meeting is?
5
fomc
1,993
February 3rd and 4th.
9
fomc
1,993
February 3rd and 4th.
9
fomc
1,993
Is the fact that we're going to take up this other issue at the next meeting going to affect the starting or ending time? How long will it continue?
31
fomc
1,993
Yes, it will. I think I'll leave that up to Don and his colleagues to work out.
20
fomc
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Well, if we plan to spend the weekend, Don, I'd appreciate knowing!
16
fomc
1,994
As you know, this is our organizational meeting and always in such meetings we have the election of the Chairman and Vice Chairman. I turn to our senior Board member to offer nominations.
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fomc
1,994
Mr. Chairman, I have the high honor and distinct privilege to nominate officers to serve until the election of their successors at the first meeting of the Committee after December 31, 1994. For Chairman of the Committee I nominate Alan Greenspan and for Vice Chairman, William J. McDonough.
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fomc
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Second.
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fomc
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Thank you. I move the nominations cease.
9
fomc
1,994
Second.
2
fomc
1,994
You're a little slow but thank you! It's been moved and seconded and the nominations have ceased.
20
fomc
1,994
The nominations have ceased and what happens now?
9
fomc
1,994
I guess we vote. All in favor--do I do that?
14
fomc
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Yes, please carry on.
6
fomc
1,994
All in favor say "Aye." SEVERAL. Aye.
15
fomc
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Opposed? Mr. Chairman, it unanimously passes. Congratulations on your election to another term as Chairman of the FOMC, and congratulations, Mr. Vice Chairman.
34
fomc
1,994
I thank you, Governor. It's always a wonder how the democratic process works in this organization. I think we want to go next to filling the staff officer positions and I call on our distinguished Deputy Secretary.
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Secretary and Economist, Donald Kohn; Deputy Secretary, Normand Bernard; Assistant Secretaries, Joseph Coyne and Gary Gillum; General Counsel, J. Virgil Mattingly; Deputy General Counsel, Ernest Patrikis; Economists, Michael Prell and Edwin Truman. Associate Economists from the Board of Governors: David Lindsey; Larry ...
151
fomc
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Thank you. Are there any objections to that listing of officers? If not, I will assume that they have been selected by the Committee. Before we go further, let me just indicate that we have a problem that emerges as a consequence of our meeting on a Thursday and Friday as distinct from the middle of the week. I don't k...
393
fomc
1,994
So move.
3
fomc
1,994
Is there a second?
5
fomc
1,994
Second.
2
fomc
1,994
Without objection. Similarly, we need to select the Manager for Domestic Operations and the Manager for Foreign Operations. Our incumbents are of course respectively Joan Lovett and Peter Fisher. I would ask whether there are any objections to their selection with the understanding that the decision made by this Commit...
82
fomc
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So move.
3
fomc
1,994
Is there a second?
5
fomc
1,994
Second.
2
fomc
1,994
Without objection. Item 4 is the regular review of the Authorization for Domestic Open Market Operations. That authorization has been circulated and if there are no comments, I will ask whether there are any objections. Hearing none, I assume that there are no problems there. Next, we have the review of: (1) the Author...
158
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All those issues including the "warehousing"?
9
fomc
1,994
Yes.
2
fomc
1,994
I have some comments on that.
7
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1,994
Sure, please go ahead.
6
fomc
1,994
Warehousing is a loan by the central bank to the Treasury. That issue is one that's general not only to this central bank but to central banks around the world. Central banks around the world are moving toward more arms length dealings with Ministries of Finance. Certainly, the "accord" between the Federal Reserve and ...
324