WASHINGTON - The Federal Reserve Board said it plans to increase its operating budget by 3.2 % in 1994.
This will bring the Fed's 1994 operating budget to $141.3 million. Details of the budget, based on the levels approved by the governors, will be made final later in the year.
The projected increase for 1994 is considerably less than this year's 7.4%. A leveling of the costs to implement new banking laws, as well as the elimination of certain one-time expenses, enabled on the board to keep the increase to a minimum, Fed staff said on Wednesday.
In voting to approve the guidelines, the governors said they intend to follow the spirit of President Clinton's government-wide cuts. And in setting its budget guidelines, the Fed relied on the inflation projection of 2.4% in President Clinton's proposed 1994 budget.