ECONOMIC AND FINANCIAL DEVELOPMENTS IN 2000 The expansion of U.S. economic activity maintained considerable momentum through the early months of 2000 despite the firming in credit markets that has occurred over the past year. Only recently has the pace of real activity shown signs of having moderated from the extremely rapid rate of increase that prevailed during the second half of 1999 and the first quarter of 2000. Real GDP increased at an annual rate of 5-1/2 percent …showed first 75 words of 10093 total…

…showed last 75 words of 10093 total…than securitize them. Banks have tightened terms and standards on loans further this year, espe-cially in the business sector, where some lenders have expressed concerns about a more uncertain corporate outlook. Bank regulators have noted that depository insti-tutions need to take particular care in evaluating lending risks to account for possi-ble changes in the overall macroeconomic environment and in conditions in securities markets. THE MONETARY AGGREGATES Growth of the monetary aggregates over the first h