17192 Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Notices

1 Copies of the Minutes of the Federal Open

Market Committee meeting of February 4-5, 1997,

which include the domestic policy directive issued

at that meeting, are available upon request to the

Board of Governors of the Federal Reserve System,

Washington, D.C. 20551. The minutes are published

in the Federal Reserve Bulletin and in the Board’s

annual report.

of Governors. Interested persons may

express their views in writing to the

Reserve Bank indicated for that notice

or to the offices of the Board of

Governors. Comments must be received

not later than April 23, 1997.

A. Federal Reserve Bank of Kansas

City (John E. Yorke, Senior Vice

President) 925 Grand Avenue, Kansas

City, Missouri 64198-0001:

1. Frank L. Carson, III, Mulvane,

Kansas; to acquire an additional 92.28

percent, for a total of 93.96 percent, of

the voting shares of Mulvane

Bankshares, Inc., Mulvane, Kansas, and

thereby indirectly acquire Mulvane

State Bank, Mulvane, Kansas.

Board of Governors of the Federal Reserve

System, April 3, 1997.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 97–8991 Filed 4-8--97; 8:45 am]

BILLING CODE 6210-01-F

FEDERAL RESERVE SYSTEM

Formations of, Acquisitions by, and

Mergers of Bank Holding Companies

The companies listed in this notice

have applied to the Board for approval,

pursuant to the Bank Holding Company

Act of 1956 (12 U.S.C. 1841 et seq.)

(BHC Act), Regulation Y (12 CFR Part

225), and all other applicable statutes

and regulations to become a bank

holding company and/or to acquire the

assets or the ownership of, control of, or

the power to vote shares of a bank or

bank holding company and all of the

banks and nonbanking companies

owned by the bank holding company,

including the companies listed below.

The applications listed below, as well

as other related filings required by the

Board, are available for immediate

inspection at the Federal Reserve Bank

indicated. Once the application has

been accepted for processing, it will also

be available for inspection at the offices

of the Board of Governors. Interested

persons may express their views in

writing on the standards enumerated in

the BHC Act (12 U.S.C. 1842(c)). If the

proposal also involves the acquisition of

a nonbanking company, the review also

includes whether the acquisition of the

nonbanking company complies with the

standards in section 4 of the BHC Act.

Unless otherwise noted, nonbanking

activities will be conducted throughout

the United States.

Unless otherwise noted, comments

regarding each of these applications

must be received at the Reserve Bank

indicated or the offices of the Board of

Governors not later than May 2, 1997.

A. Federal Reserve Bank of Kansas

City (John E. Yorke, Senior Vice

President) 925 Grand Avenue, Kansas

City, Missouri 64198-0001:

1. Exchange Bankshares Corporation

of Kansas, Atchison, Kansas; to acquire

68.03 percent of the voting shares of The

Farmers and Merchants State Bank,

Effingham, Kansas.

Board of Governors of the Federal Reserve

System, April 3, 1997.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 97–8992 Filed 4-8-97; 8:45 am]

BILLING CODE 6210-01-F

FEDERAL RESERVE SYSTEM

Federal Open Market Committee;

Domestic Policy Directive of February

4-5, 1997.

In accordance with § 271.5 of its rules

regarding availability of information (12

CFR part 271), there is set forth below

the domestic policy directive issued by

the Federal Open Market Committee at

its meeting held on February 4-5, 1997.1

The directive was issued to the Federal

Reserve Bank of New York as follows:

The information reviewed at this

meeting suggests that the economic

expansion strengthened markedly in the

fourth quarter. Private nonfarm payroll

employment increased appreciably

further in December after sizable gains

over October and November. The

civilian unemployment rate remained at

5.3 percent in December. Industrial

production rose sharply in November

and December. Consumer spending

posted a large increase in the fourth

quarter after a summer lull. Housing

activity moderated somewhat over the

closing months of the year. Growth in

business fixed investment slowed

substantially in the fourth quarter after

a sharp rise in the third quarter. The

nominal deficit on U.S. trade in goods

and services narrowed considerably in

October and November from its rate in

the third quarter. Advances in labor

compensation trended up in 1996, but

price inflation generally diminished

apart from enlarged increases in food

and energy prices.

Most market interest rates have

changed little or risen slightly since the

Committee meeting on December 17,

1996. In foreign exchange markets, the

trade-weighted value of the dollar in

terms of the other G-10 currencies has

increased substantially over the

intermeeting period.

Growth of M2 and M3 strengthened

considerably in the fourth quarter and

appeared to have continued at a fairly

brisk, though diminished, pace in

January. From the fourth quarter of 1995

to the fourth quarter of 1996, M2 is

estimated to have grown near the upper

end of the Committee’s annual range

and M3 well above the top of its range.

Total domestic nonfinancial debt has

expanded moderately on balance over

recent months and is estimated to have

grown last year near the midpoint of its

range.

The Federal Open Market Committee

seeks monetary and financial conditions

that will foster price stability and

promote sustainable growth in output.

In furtherance of these objectives, the

Committee at this meeting established

ranges for growth of M2 and M3 of 1 to

5 percent and 2 to 6 percent

respectively, measured from the fourth

quarter of 1996 to the fourth quarter of

1997. The monitoring range for growth

of total domestic nonfinancial debt was

set at 3 to 7 percent for the year. The

behavior of the monetary aggregates will

continue to be evaluated in the light of

progress toward price level stability,

movements in their velocities, and

developments in the economy and

financial markets.

In the implementation of policy for

the immediate future, the Committee

seeks to maintain the existing degree of

pressure on reserve positions. In the

context of the Committee’s long-run

objectives for price stability and

sustainable economic growth, and

giving careful consideration to

economic, financial, and monetary

developments, somewhat greater reserve

restraint would or slightly lesser reserve

restraint might be acceptable in the

intermeeting period. The contemplated

reserve conditions are expected to be

consistent with some moderation in the

expansion of M2 and M3 over coming

months.

By order of the Federal Open Market

Committee, April 2, 1997.

Donald L. Kohn,

Secretary, Federal Open Market Committee.

[FR Doc. 97–8990 Filed 4–8–97; 8:45 am]

BILLING CODE 6210–01–F