On This PageVol. 4, No. 3

Sinking Float
Last Updated: 05/08/80
Federal Reserve float-the additional bank reserves the Federal Reserve creates when it passes credit before it receives payment complicates monetary control and costs the Treasury revenue. For these reasons, the Federal Reserve System has set a sharp reduction in float as one of its main operational goals. Daily average float has been cut from more than $8 billion in early 1979 to less than $4 billion in April 1980.