Federal Register / Vol. 63, No. 110 /Tuesday, June 9, 1998 / Notices 31477

1 Copies of the Minutes of the Federal Open

Market Committee meeting of March 31, 1998,

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.

U.S.C. §§ 347b and 248(a)(2) and (i))

and is given confidential treatment (5 §

U.S.C. 552(b)(4)).

Abstract: The Federal Reserve’s

Regulation A, ‘‘Extensions of Credit by

Federal Reserve Banks,’’ (12 CFR 201)

requires that Reserve Banks review

balance sheet data in order to guard

against inappropriate discount window

borrowing situations. Currently,

borrowers are requested to report certain

balance sheet data for a period that

encompasses the dates of borrowing.

There is considerable variation across

Districts in the specific data elements

collected, in the time periods for which

data are requested, and in the formats in

which data are reported. The proposed

FR 2046 would standardize these

aspects of data collection across Reserve

Banks.

Board of Governors of the Federal Reserve

System, June 3, 1998.

Jennifer J. Johnson,

Secretary of the Board.

[FR Doc. 98–15273 Filed 6–8–98; 8:45AM]

Billing Code 6210–01–F

FEDERAL RESERVE SYSTEM

Notice of Proposals to Engage in

Permissible Nonbanking Activities or

to Acquire Companies that are

Engaged in Permissible Nonbanking

Activities

The companies listed in this notice

have given notice under section 4 of the

Bank Holding Company Act (12 U.S.C.

1843) (BHC Act) and Regulation Y, (12

CFR Part 225) to engage de novo, or to

acquire or control voting securities or

assets of a company, including the

companies listed below, that engages

either directly or through a subsidiary or

other company, in a nonbanking activity

that is listed in § 225.28 of Regulation

Y (12 CFR 225.28) or that the Board has

determined by Order to be closely

related to banking and permissible for

bank holding companies. Unless

otherwise noted, these activities will be

conducted throughout the United States.

Each notice is available for inspection

at the Federal Reserve Bank indicated.

The notice also will be available for

inspection at the offices of the Board of

Governors. Interested persons may

express their views in writing on the

question whether the proposal complies

with the standards of section 4 of the

BHC Act.

Unless otherwise noted, comments

regarding the applications must be

received at the Reserve Bank indicated

or the offices of the Board of Governors

not later than June 24, 1998.

A. Federal Reserve Bank of St. Louis

(Randall C. Sumner, Vice President) 411

Locust Street, St. Louis, Missouri 63102-

2034:

1. Farmers Bancshares, Inc.,

Hardinsburg, Kentucky; to acquire

Leitchfield Deposit Bancshares

Insurance, Inc., Leitchfield, Kentucky,

and thereby engage in acting as

principal, agent, or broker for insurance

that is directly related to an extension

of credit by the bank holding company

or any of its subsidiaries pursuant, to §

225.28(b)(11) of Regulation Y.

Board of Governors of the Federal Reserve

System, June 4, 1998.

Robert deV. Frierson,

Associate Secretary of the Board.

[FR Doc. 98–15301 Filed 6–8–98; 8:45 am]

BILLING CODE 6210–01–F

FEDERAL RESERVE SYSTEM

Federal Open Market Committee;

Domestic Policy Directive of March 31,

1998.

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 March 31, 1998.1

The directive was issued to the Federal

Reserve Bank of New York as follows:

The information reviewed at this

meeting suggests that economic activity

continued to grow rapidly during the

early months of 1998. Nonfarm payroll

employment increased sharply further

in January and February, and the

civilian unemployment rate, at 4.6

percent in February, equaled its low for

the current economic expansion.

However, growth in manufacturing

payroll employment was down over the

first two months of the year, and factory

output decelerated appreciably.

Consumer spending has risen

considerably further since year-end, and

housing activity also has strengthened

in recent months. Available indicators

point to a sharp rebound in business

fixed investment following a small

decline in the fourth quarter.

Fragmentary data on nonfarm

inventories suggest a slower rate of

accumulation early in the year. The

nominal deficit on U.S. trade in goods

and services widened substantially in

January from its average monthly rate in

the fourth quarter. Despite indications

of persisting pressures on employment

costs associated with tight labor

markets, price inflation has abated

further, primarily as a consequence of

large declines in energy prices.

Interest rates generally have risen

somewhat on balance over the

intermeeting period. Share prices in

U.S. equity markets have moved up

substantially further over the period. In

foreign exchange markets, the value of

the dollar has increased somewhat over

the period in relation to the currencies

of other major industrial nations, but it

has depreciated relative to the

currencies of most emerging market

economies in Asia.

Growth of M2 and M3 picked up

somewhat in the first quarter from

already robust rates in the fourth

quarter. Expansion of total domestic

nonfinancial debt also has strengthened

over recent months.

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 its meeting in February

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 1997 to the fourth quarter of

1998. The 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 conditions in reserve markets

consistent with maintaining the federal

funds rate at an average of around 5-1/

2 percent. 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, a somewhat higher

federal funds rate would or a slightly

lower federal funds rate might be

acceptable in the intermeeting period.

The contemplated reserve conditions

are expected to be consistent with

considerable moderation in the growth

in M2 and M3 over coming months.

By order of the Federal Open Market

Committee, May 29, 1998.

Donald L. Kohn,

Secretary, Federal Open Market Committee.

[FR Doc. 98–15272 Filed 6–8–98; 8:45 am]

BILLING CODE 6210–01–F