Bond Market Displays Optimism
Federal Reserve this past week for dues to the course I lie monetary authorities will be taking in relation to the PresidentÛªs new economic program.</br></br>The Reserve SystemÛªs policy-setting Open Market Committee met on Tuesday to review its posture. As far as market men could tell in the few days since, little if any change was voted.</br></br>But the lack of evidence of a shift toward easier credit was not discouraging. As the past week went on, optimism among traders and investors gradually increased.</br></br>SOPI11 STIC ATED market observers were not convinced that the "FedÛ would automatically case in any significant way on the mere proclamation of the PresidentÛªs program. They recognize the uncertainties that the monetary authorities faceÛÓthe lack of benchmarks to help determine what a new policy should ; lie.</br></br>To many officials, this seems like a good time to keep a low profile. To judge from the absence of overt moves to case up, they apparently prefer to let the supply and demand for credit and fixed-income securities determine the trend of interest rales at this time.