The monetary base continues to grow at a rate slightly higher than its FOMC-determined provisional growth range of 5%. When adjusted for sweep accounts, which move balances automatically into money market deposit accounts (MMDAs) to avoid reserve requirements on transactions deposits, the base has grown at a 6.5% annual rate through July (the most recent month for which sweep-account data are available). No provisional range is set for this measure of the base, but its growth rate is slightly lower than the 7.6% growth of 1997.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-10, pp. 02-04, 10.01.1998.