December 15, 1959 FOMC Minutes

FOMC minutes

7 D . D 3 D 3 J7 D 3 D J D J D .7 D J D 3 D D 19r7 1948 1919 1950 1951 1952 95 1954 955 1956 1957 1958 1959 Hote: .sbed avSa Indicate re:3ons O Oor5ing to ref are-=* dates ot Kstionsl Bureu ct Eonm'it Rzea&rcb. P - P-Peak; - Troogh. Last Mont plotted: Kovber 1959 Trend 1 exhibits an amuni hgroJth of 3.6 percent per year.

TABLE I COMPOUNDED ANNUAL GROWTH RATES OF EFFECTIVE RESERVES (Percent changes, base year to terminal year) Base Terminal Year Year 1947 1948 1949 (11 mos.) 1947 x 1.8 1.0 2.0 2.6 3.2 1948 x x 0.2 2.0 2.9 1949 x x x 3.9 4.3 4.6 4.1 4.3 4.1 1950 a xa a 4.6 5.0 4.2 1951 x x x x x 5.4 4.0 4.3 4.0 3.5 3.1 1952 x x x x x x 2.6 3.8 3.5 3.0 2.6 3.4 3.2 1953 x x x x ax x 5,0 4.0 3.1 2.6 3.6 3.3 1954 a x a a x x x x 3.0 2.2 1.9 3.3 3.0 1955 x x a a x x X x x 1.3 L.3 3.3 3.0 1956 a x ax x xa a a a 2.0 4.3 3.6 1957 a x x x x x x x x x a 6.6 4.7 1958 x x x x x x x x x x x X 2.1 1959 x x x x x x x x x x X x x *Reserve figures exhibited in Table I and the chart on effective reserves are total member bank reserves (monthly averages of daily figures) adjusted for changes in reserve requirements and for seasonal influences. No effort was made to remove the expansion potential of total reserves reculting from shifts in de posits among classes of banks and between types of deposits subject to different requirements. of computation: For May 1958-November 1959, figures used are actual Method for ceeaonal influences. Monthly values of effective member bank reserves, adjusted (when reserve requirements were last January 1947 through April 1958 reserves for the ratio of average required reserves have been derived by (1) obtaining changed) for Hay 1958-April 1959; (2) multi average deposits subject to legal reserves to ratio is of the ratio of re by the percentage the above plying actual reserves subject to legal reserves for each specified month; quired reserves to deposits the values for seasonal influences. and (3) adjusting

TABLE II COMPOUNDED ANNUAL GROWTH RATES OF THE U. S. ECONOMY (Percent changes, base year to terminal year, of GNP in 1954 dollars) Base Tere-'nsl Year Year 1947 1948 1949 1950 1951 1S52 (3 tra.) 1947 x 3.9 1.8 4.1 4.9 4.6 4.6 3.7 4.2 4.0 1948 x x -0.2 4.1 5.2 4.8 4.7 3.6 1949 x x x 8.7 8.1 6.5 6.0 4.4 5.0 4.6 4.3 3.5 3.8 1950 x x x x 7.5 5.4 5.1 3.4 4.3 3.9 3.6 2.9 3.3 1951 x x x x x 3.4 3.9 2.0 3.5 3.2 3.0 2.2 2.8 1952 x x x x x x 4.4 1.3 3.6 3.2 2.9 2.0 2.7 1953 x x x x x x x -1.7 3.1 2.8 2.6 1.6 2.4 1954 x x x x x x x x 8.2 5.1 4.0 2.4 3.2 1955 x x x x x x x x x 2.1 2.0 0.5 2.0 1956 x x x x x x x x x x 1.8 -0.2 2.0 1957 x x x x x x x x x x x -2.3 2.1 1958 x x x x x x x x x x x x 6.7 1959 x x x x x x x x x x x x x

TABLE III COMPOUNDED ANNUAL GROWTH RATES OF PRICE INFLATION (Percent changes, base year to terminal year, in Consumer Price Index) Base Terminal Year Year 1947 1948 1949 1950 1951 1952 1953 (10 mos.) 1947 x 7.6 3.2 2.5 3.8 3.5 3.1 2.7 2.3 2.2 2.3 2.4 2.2 1948 x x -1.0 0.0 2.6 2.5 2.2 2.2 1.6 1.5 1.8 1.9 1.7 1949 x x x 1.0 4.4 3.7 3.0 2.4 2.0 1.9 2.1 2.2 2.0 1950 a x x x 8.0 5.1 3.6 2.8 2.2 2.1 2.3 2.3 2.1 1951 x x x x x 2.3 1.5 1.1 0.8 0.9 1.3 1.5 1.4 1952 x x x x a x 0.8 0.6 0.3 0.6 1.2 1.4 1.3 1953 x x x x x x x 0.3 0.0 0.5 1.2 1.5 1.4 1954 x x x x x x x x -0.3 0.6 1.5 1.8 1.6 x x x x 1.5 2.5 2.6 2.1 1955 x x x x x x x x x x x 3.4 3.1 2.3 1956 x x x x x x x x x 2.7 1.7 x x a x x x x x x x x 0.7 x x x x x 1958 x x x x x x x x x x 1959 x x x x x