Business: Fed Foul-Up

Only a $3 billion error

Never had a clerical goof come at so inopportune a time. Less than a month after the Federal Reserve Board unfurled harsh new measures to whip inflation by holding down the money supply, chagrined Fed officials last week revealed that previously reported money figures had been overstated by $3 billion. Instead of surging in the past two weeks, the money stock had actually declined.

New York's Manufacturers Hanover admitted to causing the error. The bank blamed employees' unfamiliarity with a new form used for deposit reports to the Fed. Despite its cluster of computers, the multinational giant was...

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