July 25, 1958 FOMC Minutes: Full Text
A meeting of the Federal Open Market Committee was held on Friday, July 25, 1958, at 11:00 a.m. This was a telephone conference meeting and each individual was in Washington except as otherwise indicated in parentheses in the following list of those participating PRESENT: Mr. Martin, Chairman Mr. Hayes, Vice Chairman (New York) Mr. Balderston Mr. Fulton (Cleveland) Mr. Irons (Dallas) Mr. Leach (Richmond) Mr. Mangels (San Francisco) Mr. Mills Mr. Robertson Mr. Shepardson Mr. Szymczak Mr. Treiber, Alternate Member of the Federal Open Market Committee (New York) Mr. Riefler, Secretary Mr. Thurston, Assistant Secretary Mr. Solomon, Assistant General Counsel Mr. Thomas, Economist Mr. Young, Associate Economist System Open Market Mr. Rouse, Manager, Account (New York) Assistant to the Mr. Molony, Special Board of Governors Board of Assistant Secretary, Mr. Kenyon, Governors Division of Associate Adviser, Mr. Koch, Board of and Statistics, Research Governors Finance Chief, Government Mr. Keir, Acting of Research and Section, Division Board of Governors Statistics, Assistant Vice and Marsh, Messrs. Larkin Bank of Federal Reserve Presidents, New York (New York) Department, Securities Stone, Manager, Mr. (New York) New York Bank of Federal Reserve
Mr. Larkin reported that the Government securities market was steady this morning. The intermediate-term issues drifted some what yesterday but there was no tendency for prices to move sharply and the downward drift did not build up significantly. Today, that downward drift had been stopped and the market had a generally steady tone. Where prices had changed, they were slightly higher and trading was light. Treasury bills were demonstrating further strength, and bill holdings of reporting dealers showed a short position of $25 million. Thus, there was quite a scarcity of bills in the market as measured by dealers' inventories. Total dealer holdings of Government securities showed a drop roughly the same as the drop in holdings of bills, so dealer positions were quite low in total positions of $2.5 billion that the dealers comparison with the had late in June. detailed report on the market, continued with a more Mr. Larkin Mr. Thomas dated today, a copy of summarized in a memorandum from as files of the Committee. been placed in the which has New York Bank's were the Larkin's report Included in Mr. week which began For the statement net free reserves. estimates of at $57 million, was placed of free reserves the average yesterday at $1,175 was placed 6 the figure ending August for the week and bills from of Treasury for run-off any allowance without million, financing. any Treasury or for that week during System Account the were Mr. Thomas, by as stated staff, the Board's of The projections
substantially higher, with an estimated average of $530 million for the week ending next Wednesday and an estimate of $1,375 for the week ending August 6. The latter estimate assumed a Treasury financing on August 4. Basically, the difference in the estimates of the New York Bank and the Board's staff reflected a variance in the estimates of required reserves, In terms of approach, Mr. Larkin said that the Account Management did not contemplate market transactions today. The Bank had received a small foreign order for Treasury bills and it was expected that this order of $5 million would be made avail able from the System Account. Following a further discussion of market developments, it was agreed that there would be no further meeting of the Federal Open Market Committee until the meeting in Washington on Tuesday, in the meantime circumstances arose of such a nature July 29, unless the Manager of the System Account to request that a as to cause meeting be held. The meeting adjourned.