Mixed Economic Signs Prod Senate Money Policy Review WATCHING THE FED

By David R. Francis, writer of The Christian Science Monitor | The Christian Science Monitor, March 11, 1993 | Go to article overview

Mixed Economic Signs Prod Senate Money Policy Review WATCHING THE FED


David R. Francis, writer of The Christian Science Monitor, The Christian Science Monitor


TWELVE Federal Reserve Bank presidents, lined up like birds on a telephone wire, were ready to testify to the Senate Banking Committee Wednesday, reporting in turn about the status of the economy in their districts and national monetary policy.

The event - probably the first time in the 75-year history of the Fed that the 12 were scheduled as a group to appear before Congress - reflects the concern of legislators with monetary policy.

"It is a critical economic policy," notes a Congressional source.

Some observers figure the senators are pressuring these Fed officials for even lower interest rates. A senior member of the committee, Sen. Paul Sarbanes (D) of Maryland, has proposed legislation that would remove the 12 from the monetary-policymaking Federal Open Market Committee. Many of these presidents are considered "hawks" in the battle against inflation, willing to see the country endure slow growth to bring down the rate of inflation.

If the bill were enacted - and that is considered unlikely - the FOMC would consist of only the seven governors appointed by the president and confirmed by the Senate. Presidents of the regional banks would act as an advisory committee meeting with the Board four times a year.

On the House side, Rep. Henry Gonzalez, chairman of the Banking committee, has put forward a bill that would require the 12 to face Congressional confirmation. At present, the bank presidents are proposed and appointed by the boards of the regional banks, with the Fed's Board of Governors retaining veto power.

The Fed has come under greater scrutiny in Congress because of the 1990-91 recession and a slow recovery that has created few new jobs.

The economy has picked up some steam recently, with output growing at a 4.8 percent annual rate in the last quarter of 1992 and nonfarm payrolls up a husky 365,000 in February.

Some other statistics have been less vigorous. Factory orders declined 1.3 percent in January. Retailers posted slow sales in February, perhaps due to bad weather. Car sales have been weak.

What especially disturbs some economists is the shrinkage in the broad measures of money supply for the last three months. That last happened in 1959. M-1, the narrow measure of money that includes currency and checking accounts, also likely declined in February. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Mixed Economic Signs Prod Senate Money Policy Review WATCHING THE FED
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.