The Monetary Targets in 1984

Every February, the Chairman of the Federal Reserve Board of Governors reports to Congress on the economy and presents objectives for monetary policy for the coming year. The chairman’s reports are required by the Full Employment and Balanced Growth Act of 1978 (Humphrey-Hawkins). In July, the chairman reviews the current years’ objectives and presents tentative objectives for the next year. These objectives are stated as annual target ranges for growth in the supply of money and credit. As Chairman Paul A. Volcker stated in his February 1984 report, “The ranges for 1984 are intended to be consistent with the basic policy objective of achieving long-lasting economic expansion in a context of continuing control of inflationary pressures.”