Fed Won't Tighten Monetary Policy: Volcker Letter Reveals That Panel...
Federal Reserve policy makers have agreed not to tighten monetary policy to bring the growth of the money supply back down within its target range for the second half of this year, Federal Reserve Chairman Paul A. Volcker disclosed yesterday.</br></br>VolckerÛªs comments came in a letter to Del. Walter E. Fauntroy (D-D.C.), chairman of the House domestic monetary policy subcommittee, which was released after financial markets were closed.</br></br>Market analysts generally have not been expecting the Fed to tighten up, though an explicit statement to that effect could give bond and</br></br>The statement also gained in significance because it came just after a meeting this week of the FedÛªs policy making group, the Federal Open Market Committee, to reassess monetary policy.</br></br>Volcker said that the FOMC ÛÏhas agreed that growth of Ml over the second half of the year as a whole above the target range established in July would be acceptable.Û