A bill to amend the Federal Reserve Act to direct the Federal Open Market Committee to regulate the extension of the money supply to achieve steady growth rates of money, to reduce the rate of inflation, and to encourage continued growth of the economy.

Amends the Federal Reserve Act to direct the Board of Governors of the Federal Reserve System to regulate purchases and sales of paper (eligible for open-market operations) so that specified monthly targets for the average money supply ranging from $812,100,000,000 in January, 1978 to $1,008,600,000,000 in December, 1981, are met and that thereafter the average money supply during any month shall be within one percentage point of the growth path and has a growth rate of three and one-half percent per annum.