After the Accord A History of Federal Reserve Open Market Operations, the US Government Securities Market, and Treasury Debt Management from 1951 to 1979
Book contents
- After the Accord
- Studies in Macroeconomic History
- After the Accord
- Copyright page
- Dedication
- Contents
- Charts
- Tables
- Boxes
- Foreword
- Acknowledgments
- Treasury Officials
- Federal Reserve Officials
- The Many Varieties of Dealer
- 1 Introduction
- Part I The System and the Market in the 1940s
- Part II The Accord and Its Aftermath
- Part III The New Regime
- Contents
- 10 Monetary Policy in 1954
- 11 Policy Instruments for Reserves Management
- 12 Monetary Policy in 1955
- 13 Pragmatism in the Accommodation of Treasury Offerings
- 14 1956 and 1957
- Part IV Summer 1958 and Its Consequences
- Part V The End of Bills Preferably
- Part VI The 1960s
- Part VII Updating Market Infrastructures
- Part VIII The 1970s
- Part IX Infrastructure in the 1970s
- References
- Index
12 - Monetary Policy in 1955
from Part III - The New Regime
Published online by Cambridge University Press: 14 January 2021
Book contents
- After the Accord
- Studies in Macroeconomic History
- After the Accord
- Copyright page
- Dedication
- Contents
- Charts
- Tables
- Boxes
- Foreword
- Acknowledgments
- Treasury Officials
- Federal Reserve Officials
- The Many Varieties of Dealer
- 1 Introduction
- Part I The System and the Market in the 1940s
- Part II The Accord and Its Aftermath
- Part III The New Regime
- Contents
- 10 Monetary Policy in 1954
- 11 Policy Instruments for Reserves Management
- 12 Monetary Policy in 1955
- 13 Pragmatism in the Accommodation of Treasury Offerings
- 14 1956 and 1957
- Part IV Summer 1958 and Its Consequences
- Part V The End of Bills Preferably
- Part VI The 1960s
- Part VII Updating Market Infrastructures
- Part VIII The 1970s
- Part IX Infrastructure in the 1970s
- References
- Index
Summary
Strengthening economic activity in 1955 led to rising interest rates that forced the Fed to stand up to its commitment to support Treasury offerings priced at market levels. This chapter describes the development of “even keeling” – the practice of stabilizing the Treasury market while the Treasury was offering new securities – and the continuing preference for repos, rather than outright purchases and sales, for offsetting short-term fluctuations in autonomous factors.
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- After the AccordA History of Federal Reserve Open Market Operations, the US Government Securities Market, and Treasury Debt Management from 1951 to 1979, pp. 167 - 186Publisher: Cambridge University PressPrint publication year: 2021