Word: feds
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Dates: during 1980-1989
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Credit controls. They will be imposed, in a mild way. Said Carter: "Inflation is fed by credit-financed spending. Consumers have gone into debt too heavily. Businesses and other borrowers are tempted
Also, the Federal Reserve will be empowered to extend its reserve requirements to banks that are not members of the Federal Reserve System; these banks hold 30% of all deposits. The effect will be to tighten the Fed's control of lendable funds throughout the economy. Fed Chairman Volcker will also undertake, in Carter's words, "a voluntary program, effective immediately, to restrain excessive growth in loans by larger banks." That sounds like more federal jawboning to get banks to stop making loans for unproductive purposes, such as financing mergers or speculative inventory increases...
Monetary measures. They are being tightened. The Federal Reserve announced that it will impose a 3% surcharge, on top of the 13% discount rate, on some of the loans it makes to member banks. A bank borrowing from the Fed two weeks in a row, or more than four weeks in any quarter, will thus be charged 16%. If banks want to go ahead and borrow anyway, the move would tend to raise still higher the interest rates that they in turn charge when they lend the money to customers. Federal Reserve officials hope that banks will instead reduce both...
...auxiliary telescope. As the instruments scan the skies, the images they capture will be focused onto sensitive photo-imaging tubes rather than film. An outgrowth of the military's night-vision devices, these tubes convert even the faintest flickers of light into electronic impulses, which are then fed into computers. There GEODSS performs its real prestidigitation. It separates from the myriad stars in the background any tiny man-made objects passing into the telescope's field of view...
Apart from the obvious political considerations, the administration privately anticipated the only real effect of the program would be psychological. Inflation feeds on expectations of future inflations, so a program that looked like it would work--could work. Thus Fed Chairman Paul A. Volcker comments on the limited credit controls, "What we're talking about is not a huge part of the credit scene, but it's a showy and symbolic one." John L. Murray, president of Universal Foods, sums up the general business reaction to Carter's program when he says it is "essentially symbolic...