The unwinding of the buildups in liquidity that occurred in late 1999 before the century date change depressed growth in the aggregates early this year.
In contrast, flows to institutional money funds slowed from the rapid pace of late 1999 after the heightened preference for liquid assets ahead of the century date change ebbed.
Excluding the final maintenance period of 1999 (period ended December 29), the revisions to initial period-average estimates of currency tended to be somewhat greater in absolute terms than in previous years, reflecting the large and uncertain movements in that factor related to the century date change (table 3).
The efforts to improve the predictability of currency and the Treasury balance did not prevent some deterioration in the daily forecast misses for these factors, although the increase in the misses was proportionally much smaller than the rise in volatility for each of these factors around the century date change.
The timing of investment in high-tech equipment over the past couple of years was likely affected to some degree by business preparations for the century date change.
During the summer, they rose again in response to concerns about market liquidity, expectations of a surge in financing before the century date change, and anticipated firming of monetary policy.
In the circumstances, a Committee decision to retain the existing asymmetry toward tightening could well send a misleading signal about the probability of near-term action and have an unsettling effect on financial markets at a time when concerns relating to the century date change
might be adding to normal year-end pressures.
These procedures provide guidelines for addressing problem institutions through the century date change.
Looking forward to the critical months remaining until the century date change, the Federal Reserve has initiated a Phase III program for monitoring the Year 2000 readiness of banking organizations.
Managing preparations for the century date change is particularly resource-intensive given the number of automated systems to be addressed, systems interrelationships and interdependencies, interfaces with external data sources and customers, and testing requirements.
In 1995, a Federal Reserve System-wide project was initiated, referred to as the Century Date Change (CDC) project, to coordinate the efforts of the Reserve Banks, FRAS, and the Board of Governors.
Our focus on the industry's readiness began last year, when the Federal Reserve commenced examining banks' plans and initiatives for the century date change