Board of Governors of the Federal Reserve System

Figure 1. Federal Reserve Bank of New York Discount Rate

Daily Data from 1960-1974.

The vertical axis is labeled “Annualized Percent,” and goes from about 3 percent to about 8 percent. The horizontal axis is labeled “Date,” and goes from about 1960 to about 1975. There is a blue line that represents the discount rate at the Federal Reserve Bank of New York over the period shown. The line starts in 1960 at about 4 percent and then quickly falls to about 3 percent. Around 1964, the line moves up gradually, though unevenly, to about 4.5 percent around 1966. The line steps down to around 4 percent before start to increase again around 1968. The line reaches about 6 percent in 1970. Around 1971, the line moves down to around 5 percent before rising again around 1973 and reaching about 8 percent at the end of the period shown.

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Figure 2. Treasury Yields Around the December 17, 1968 Announcement

Daily Data from November 1968-January 1969.

The vertical axis is labeled “Annualized Percent,” and goes from about 5.4 percent to about 6.7 percent. The horizontal axis is labeled “Date,” and goes from November 1, 1968 to February 1, 1969. The month of December 1968 is shaded. There is a vertical line in the middle of the chart labeled “December 17, 1968.” The figure shows four lines labeled “3-Month,” “1-Year,” “3-Year,” “10-Year.” The lines represent constant maturity Treasury yields at those maturities. The four lines start out at between about 5.5 percent and about 5.7 percent and move around only a little in November of 1968. The lines move up notably in December 1968, including a relatively large move in the days after December 17, 1968. After that date, they run between about 6 percent and 6.6 percent for the rest of the period shown.

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