February 15, 1977 FOMC Record of Policy Actions

FOMC minutes

which regulates currencies, securities, commodities, or financial institutions, be likely to lead to significant financial speculation in currencies, securities, or commodities."3/ As to meetings closed under such exemption, the Act requires the maintenance of either a transcript, electronic recording or minutes and sets forth specified, detailed requirements as to the contents and timing of disclosure of certain portions or all of such minutes. The Act permits the withholding from the public of the minutes where disclosure would be likely to produce adverse consequences of the nature described in the relevant exemptions. The FOMC has reviewed the agenda of its monthly meetings for the past three years and has determined that all such meetings could have been closed pursuant to the exemption dealing with financial speculation or other exemptions set forth in the Sunshine Act. The FOMC has further determined that virtually all of its substantive deliberations could have been preserved pursuant to the Act's minutes requirements and that such could similarly have been protected against minutes premature disclosure under the provisions of the Act. The FOMC's deliberations are currently reported by means of a document entitled "Record of Policy Actions" which is released to the public approximately one month after the meeting to which The Record of Policy Actions complies it relates. with the Act's minutes requirements in that it contains a full and accurate report of all matters 3/ Government in the Sunshine Act, Pub. L. No. 94-409, 90 Stat. 1242 (1976). §3(a),

of policy discussed and views presented, clearly sets forth all policy actions taken by the FOMC and the reasons therefor, and includes the votes by individual members on each policy action. The timing of release of the Record of Policy Actions is fully consistent with the Act's provisions assuring against premature release of any item of discussion in an agency's minutes that contains information of a sensitive financial nature. In fact, by releasing the comprehensive Record of Policy Actions to the public approximately a month after each meeting, the FOMC exceeds the publication requirements that would be mandated by the letter of the Sunshine Act. congressional purpose under Recognizing the lying enactment of the Sunshine Act, the FOMC has determined to continue its current practice and timing of public disclosures in the conviction its operations thus conducted are consistent that intent and spirit of the Sunshine Act. with the Votes for this action: Messrs. Burns, Volcker, Balles, Black, Coldwell, Gardner, Jackson, Kimbrel, Lilly, Partee, Wallich, and Winn. Votes against this action: None. 3. Amendment to rules regarding availability of information At this meeting, the Committee approved an amendment, effective March 12, 1977, to Section 271.6(a) of its rules regarding availability of information to implement an amendment to the Freedom of Information Act effected by the Government in the Sunshine Act. After incorporating this amendment the Section read as follows:

271.6 Information not Disclosed Except as may be authorized by the Committee, infor mation of the Committee that is not available to the public through other sources will not be published or made available for inspection, examination, or copying by any person if such information (a) is specifically exempted from disclosure by statute (other than section 552b of Title 5 United States Code), provided that such statute (A) requires that the matters be withheld from the public in such a manner as to leave no discretion on the issue, or (B) establishes particular criteria for withholding or refers to particular types of matters to be withheld; or is specifically authorized under criteria established by an executive order to be kept secret in the interest of national defense or foreign policy and is in fact properly classified pursuant to such executive order. Votes for this action; Messrs. Burns, Volcker, Balles, Black, Coldwell, Gardner, Jackson, Kimbrel, Lilly, Partee, Wallich, and Winn. Votes against this action: None. 4. Revision of guidelines for operations in Federal agency issues At this meeting the Committee amended number 4 of the guidelines for the conduct of System operations in Federal agency issues to take account of the operations of the Federal

Financing Bank. The change, which was effective immediately, limits Federal Reserve purchases of Federal agency securities to issues of those agencies that are not eligible to borrow funds from the Federal Financing Bank, which began operations in mid-1974. Securities of the Bank itself are eligible for purchase by the System, although none is outstanding at present. of Government-sponsored agencies--such as the Federal Securities home loan banks, Federal National Mortgage Association, Federal land banks, Federal intermediate credit banks, and the banks for cooperatives--will continue to be eligible for System purchase under the new rules. As amended, guideline number 4 read as follows: Purchases will be limited to fully taxable issues, not eligible for purchase by the Federal Financing Bank, there is an active secondary market. Purchases for which will also be limited to issues outstanding in amounts of $300 million or over in cases where the obligations have a maturity of five years or less at the time of issuance, and to issues outstanding in amounts of $200 million or over in cases where the securities have a maturity of more than five years at the time of issuance. Votes for this action: Messrs. Burns, Volcker, Balles, Black, Coldwell, Gardner, Jackson, Kimbrel, Lilly, Partee, Wallich, and Winn. Votes against this action: None.