Board of Governors of the Federal Reserve System

expectations of less upward interest rate pressure for some time ahead...expectations. From the second to the third quarter of 1976 M1 grew at

Policy, Board of Governors Mr. Gemmill, Senior Associate Director, Division...policy do we follow now? Do we update these every month? Do we mark-to-market

policy, efficiency, welfare, social planner, bargaining,market tightness...policy interacts with search frictions despite thefact that connecting

expectations were curbed. In the event, the FOMC hiked the funds rate ...policy developments do not produce a radical change in longer-range expectations

expectations. Commercial construction activity generally remained robust...expectations. ¹Prepared at the Federal Reserve Bank of Chicago and based

Prefatory Note The attached document represents the most complete and accurate version available based on original copies culled from the files

Policy Conference. All errors are my own. The views expressed in this

expectations, which had remained stable. Against this backdrop, most directors...policy actions took place. Participating in this determination: Chair

expectations. That said, labor demand appears to have slowed only modestly...investors apparently became less willing to hold risky assets. These developments

policy than to the possibil- ity of an easing of policy. Even though the...invested in those assets or lent against them; nonfinancial firms began