April 17, 1962 FOMC Minutes

FOMC minutes

Chairman Martin said that until there was a more unanimous point of view than had been indicated at this meeting it would be a mistake to press the question of publication of the minutes to a vote. Both sides of the question had been presented reasonably well today, and as he had indicated earlier the views expressed by Mr. Ellis were persuasive. Chairman Martin went on to emphasize that from his standpoint there were important considerations involved in this question. Every thing that Mr. Ellis had said was well taken but, having spent a good deal of time in various libraries recently, he was convinced that there was a great shortage of good material on the operations of the Federal Reserve System. Information on what the System had actually done was woefully lacking. Various individuals formerly connected with the System had written things from their particular points of view, but this did not meet the need for full information to enable students and others to know what the Federal Reserve was doing in order that they might write objective analyses. Chairman Martin said that he, personally, would be opposed to a quarterly analysis of Committee decisions on monetary policy of the sort he understood several had suggested around the table. Such a review pre pared within the System for publication shortly after decisions were reached and while they still were being put into effect could not avoid being an apology for the Committee's actions. One result would be to make the position of the Chairman much more difficult than it now was.

of monetary policy could hardly be expected to be Any such analysis objective or to reach the problem that the System had to deal with. He regretted that the institutional life of the System, which he believed to be in danger, could not be put in a light that the public would be able to visualize, so as to see that intelligent and conscientious persons were sitting around the table at frequent intervals analyzing the situation different points of view as to what would be the most and expressing suitable procedure to follow in carrying out the purposes of the Federal Reserve System. He believed that the minute record of these discussions, with some defects, was impressive as indicating both an attitude and even the System was attempting to render the decisions for a procedure whereby responsible. He did not believe that the System could put which it was out a quarterly report that would do what was needed. Also, he had come to the conclusion that quarterly publication of the record of policy meet the need, and he felt that he had convinced a actions would not of the Senate Banking and Currency Committee that an former Chairman earlier proposal that the Committee publish its record of policy actions at quarterly intervals would not be appropriate. This was not a one-man operation, nor a one-bank operation, but it was a group of individuals attempting to develop dispassionately a policy in the interest of the whole economy. It was this institutional problem that the System faced. relatively few members had an understanding of the Even in the Congress System or the way it worked. After further comments, Chairman Martin suggested that the Committee continue to study the problem that had been discussed and

that at a future time it explore further the means that might be taken for dealing with this problem. In his judgment it would be a mistake, even if it were possible to arrive at a favorable vote for publication, to take such action at this time. The points made against publication of the minutes seemed almost unanswerable, but there should be some way of the Federal Reserve System and presenting to the public the nature of the way this group operated, the way its meetings were conducted. This was a problem that all members of the Committee should continue to study. a quarterly article on Mr. Ellis commented that, in suggesting of the policy record, he had in monetary policy or quarterly publication for presenting to scholars and others a mind that this could be a vehicle actions taken by the Committee and that this would be current statement of them than publication of the minutes. more useful to a quarterly article on Martin responded that the idea of Chairman quarterly publication of the policy record did not now monetary policy or to be desirable. It would be possible to give out some kind seem to him every three months. However, he did not think that of a statement be placed in the position of members of the Committee should individual votes on policy positions currently or very recently under having their discussion made public. He was against trying to conduct policy in a way news, and yet this was what would be sought with that would make spot frequent publication of the policy record. In concluding this portion of the meeting, Chairman Martin stated objection the question of publication of the minutes that in the absence of

of the Federal Open Market Committee would be tabled. No objection to this procedure was indicated. It was agreed that the next meeting of the Federal Open Market Committee would be held on Tuesday, May 8, 1962. Tentative dates for following meetings were set for May 29, June 19, and July 10, 1962. Thereupon the meeting adjourned. Assistant Secretary