Word: feds
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Dates: during 1970-1979
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...order to make U.S. currency more attractive to foreign investors, the Federal Reserve Board has raised American interest rates another notch.* It boosted the discount rate, the charge imposed on Federal Reserve loans to member banks, by a half-point, to 6½%, and raised its target for the "Fed funds" rate, which banks charge one another on overnight loans, from 6½% to about 6¾%. Other rates moved up in sympathy; the prime rate on banks' loans to their best business borrowers rose from...
...chairman has no such clear guidelines. He will be under heavy pressure to pump out enough money to speed up the growth of the economy, yet somehow keep the money supply from growing so rapidly as to accelerate inflation, and to hold down interest rates besides. How can a Fed chairman perform such an exquisitely difficult balancing act? Says one staff member of the Senate Banking Committee: "The answer is obvious...
...Miller won enormous respect as the chairman of Textron Inc., the giant and flourishing conglomerate, he has had little firsthand experience in the esoteric area of monetary policy. During his first few months in office he is likely to be more dependent on staff than was Burns, who dominated Fed decisions by the force of his personality and wide-ranging knowledge. As a consequence, no radical changes in Federal Reserve Board policy are expected immediately-but that will scarcely keep Miller out of controversy...
...much success; the basic money supply during 1977 grew by about 7.4%, beyond Burns' target range of 4% to 6½%. That bothers conservatives, who want slower growth. But the board's efforts to throttle back have pushed up interest rates sharply. For example, the rate on "Fed funds"-overnight loans from one bank to another-rose two full percentage points during 1977, to 6.65%. Liberals like Presidential Economic Adviser Charles Schultze fear that any further rise will hurt the recovery by making business borrowing too expensive...
...Beryl Sprinkel, executive vice president of Chicago's Harris Trust & Savings Bank, contend that the Federal Reserve should concentrate on moderating the growth of money supply and let interest rates go wherever the market takes them. Liberal economists like Arthur Okun of the Brookings Institution retort that the Fed should concentrate on holding down business borrowing costs and not worry so much about money-supply targets...