Extensions of Credit by Federal Reserve Banks, 7202 [E8-2209]
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Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Rules and Regulations
federal funds rate (from 3.50 percent to
3.00 percent) approved by the Federal
Open Market Committee (Committee)
and announced at the same time. A
press release announcing these actions
indicated that:
FEDERAL RESERVE SYSTEM
12 CFR Part 201
[Regulation A]
Extensions of Credit by Federal
Reserve Banks
Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
AGENCY:
SUMMARY: The Board of Governors of the
Federal Reserve System (Board) has
adopted final amendments to its
Regulation A to reflect the Board’s
approval of a decrease in the primary
credit rate at each Federal Reserve Bank.
The secondary credit rate at each
Reserve Bank automatically decreased
by formula as a result of the Board’s
primary credit rate action.
DATES: The amendments to part 201
(Regulation A) are effective February 7,
2008. The rate changes for primary and
secondary credit were effective on the
dates specified in 12 CFR 201.51, as
amended.
rfrederick on PROD1PC67 with RULES
FOR FURTHER INFORMATION CONTACT:
Jennifer J. Johnson, Secretary of the
Board (202/452–3259); for users of
Telecommunication Devices for the Deaf
(TDD) only, contact 202/263–4869.
SUPPLEMENTARY INFORMATION: The
Federal Reserve Banks make primary
and secondary credit available to
depository institutions as a backup
source of funding on a short-term basis,
usually overnight. The primary and
secondary credit rates are the interest
rates that the twelve Federal Reserve
Banks charge for extensions of credit
under these programs. In accordance
with the Federal Reserve Act, the
primary and secondary credit rates are
established by the boards of directors of
the Federal Reserve Banks, subject to
the review and determination of the
Board.
The Board approved requests by the
Reserve Banks to decrease by 50 basis
points the primary credit rate in effect
at each of the twelve Federal Reserve
Banks, thereby decreasing from 4.00
percent to 3.50 percent the rate that
each Reserve Bank charges for
extensions of primary credit. As a result
of the Board’s action on the primary
credit rate, the rate that each Reserve
Bank charges for extensions of
secondary credit automatically
decreased from 4.50 percent to 4.00
percent under the secondary credit rate
formula. The final amendments to
Regulation A reflect these rate changes.
The 50-basis-point decrease in the
primary credit rate was associated with
a similar decrease in the target for the
VerDate Aug<31>2005
15:02 Feb 06, 2008
Jkt 214001
Financial markets remain under
considerable stress, and credit has tightened
further for some businesses and households.
Moreover, recent information indicates a
deepening of the housing contraction as well
as some softening in labor markets.
The Committee expects inflation to
moderate in coming quarters, but it will be
necessary to continue to monitor inflation
developments carefully.
Today’s policy action, combined with
those taken earlier, should help to promote
moderate growth over time and to mitigate
the risks to economic activity. However,
downside risks to growth remain. The
Committee will continue to assess the effects
of financial and other developments on
economic prospects and will act in a timely
manner as needed to address those risks.
Regulatory Flexibility Act Certification
Pursuant to the Regulatory Flexibility
Act (5 U.S.C. 605(b)), the Board certifies
that the new primary and secondary
credit rates will not have a significantly
adverse economic impact on a
substantial number of small entities
because the final rule does not impose
any additional requirements on entities
affected by the regulation.
Administrative Procedure Act
The Board did not follow the
provisions of 5 U.S.C. 553(b) relating to
notice and public participation in
connection with the adoption of these
amendments because the Board for good
cause determined that delaying
implementation of the new primary and
secondary credit rates in order to allow
notice and public comment would be
unnecessary and contrary to the public
interest in fostering price stability and
sustainable economic growth. For these
same reasons, the Board also has not
provided 30 days prior notice of the
effective date of the rule under section
553(d).
12 CFR Chapter II
List of Subjects in 12 CFR Part 201
Banks, Banking, Federal Reserve
System, Reporting and recordkeeping.
PART 201 EXTENSIONS OF CREDIT
BY FEDERAL RESERVE BANKS
(REGULATION A)
1. The authority citation for part 201
continues to read as follows:
I
Authority: 12 U.S.C. 248(i)–(j), 343 et seq.,
347a, 347b, 347c, 348 et seq., 357, 374, 374a,
and 461.
2. In § 201.51, paragraphs (a) and (b)
are revised to read as follows:
I
§ 201.51 Interest rates applicable to credit
extended by a Federal Reserve Bank.1
(a) Primary credit. The interest rates
for primary credit provided to
depository institutions under § 201.4(a)
are:
Federal Reserve
Bank
Rate
Boston ..................
New York .............
Philadelphia .........
Cleveland .............
Richmond .............
Atlanta ..................
Chicago ................
St. Louis ...............
Minneapolis ..........
Kansas City .........
Dallas ...................
San Francisco ......
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
Effective
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
30,
30,
30,
30,
31,
30,
30,
31,
31,
30,
31,
30,
2008.
2008.
2008.
2008.
2008.
2008.
2008.
2008.
2008.
2008.
2008.
2008.
(b) Secondary credit. The interest
rates for secondary credit provided to
depository institutions under 201.4(b)
are:
Federal Reserve
Bank
Rate
Boston ..................
New York .............
Philadelphia .........
Cleveland .............
Richmond .............
Atlanta ..................
Chicago ................
St. Louis ...............
Minneapolis ..........
Kansas City .........
Dallas ...................
San Francisco ......
*
*
*
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
*
Effective
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
30,
30,
30,
30,
31,
30,
30,
31,
31,
30,
31,
30,
2008.
2008.
2008.
2008.
2008.
2008.
2008.
2008.
2008.
2008.
2008.
2008.
*
By order of the Board of Governors of the
Federal Reserve System, February 4, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8–2209 Filed 2–6–08; 8:45 am]
BILLING CODE 6210–01–P
Authority and Issuance
For the reasons set forth in the
preamble, the Board is amending 12
CFR Chapter II to read as follows:
I
PO 00000
Frm 00016
Fmt 4700
Sfmt 4700
1 The primary, secondary, and seasonal credit
rates described in this section apply to both
advances and discounts made under the primary,
secondary, and seasonal credit programs,
respectively.
E:\FR\FM\07FER1.SGM
07FER1
]]>Agencies
[Federal Register Volume 73, Number 26 (Thursday, February 7, 2008)]
[Rules and Regulations]
[Page 7202]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-2209]
[[Page 7202]]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 201
[Regulation A]
Extensions of Credit by Federal Reserve Banks
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
has adopted final amendments to its Regulation A to reflect the Board's
approval of a decrease in the primary credit rate at each Federal
Reserve Bank. The secondary credit rate at each Reserve Bank
automatically decreased by formula as a result of the Board's primary
credit rate action.
DATES: The amendments to part 201 (Regulation A) are effective February
7, 2008. The rate changes for primary and secondary credit were
effective on the dates specified in 12 CFR 201.51, as amended.
FOR FURTHER INFORMATION CONTACT: Jennifer J. Johnson, Secretary of the
Board (202/452-3259); for users of Telecommunication Devices for the
Deaf (TDD) only, contact 202/263-4869.
SUPPLEMENTARY INFORMATION: The Federal Reserve Banks make primary and
secondary credit available to depository institutions as a backup
source of funding on a short-term basis, usually overnight. The primary
and secondary credit rates are the interest rates that the twelve
Federal Reserve Banks charge for extensions of credit under these
programs. In accordance with the Federal Reserve Act, the primary and
secondary credit rates are established by the boards of directors of
the Federal Reserve Banks, subject to the review and determination of
the Board.
The Board approved requests by the Reserve Banks to decrease by 50
basis points the primary credit rate in effect at each of the twelve
Federal Reserve Banks, thereby decreasing from 4.00 percent to 3.50
percent the rate that each Reserve Bank charges for extensions of
primary credit. As a result of the Board's action on the primary credit
rate, the rate that each Reserve Bank charges for extensions of
secondary credit automatically decreased from 4.50 percent to 4.00
percent under the secondary credit rate formula. The final amendments
to Regulation A reflect these rate changes.
The 50-basis-point decrease in the primary credit rate was
associated with a similar decrease in the target for the federal funds
rate (from 3.50 percent to 3.00 percent) approved by the Federal Open
Market Committee (Committee) and announced at the same time. A press
release announcing these actions indicated that:
Financial markets remain under considerable stress, and credit
has tightened further for some businesses and households. Moreover,
recent information indicates a deepening of the housing contraction
as well as some softening in labor markets.
The Committee expects inflation to moderate in coming quarters,
but it will be necessary to continue to monitor inflation
developments carefully.
Today's policy action, combined with those taken earlier, should
help to promote moderate growth over time and to mitigate the risks
to economic activity. However, downside risks to growth remain. The
Committee will continue to assess the effects of financial and other
developments on economic prospects and will act in a timely manner
as needed to address those risks.
Regulatory Flexibility Act Certification
Pursuant to the Regulatory Flexibility Act (5 U.S.C. 605(b)), the
Board certifies that the new primary and secondary credit rates will
not have a significantly adverse economic impact on a substantial
number of small entities because the final rule does not impose any
additional requirements on entities affected by the regulation.
Administrative Procedure Act
The Board did not follow the provisions of 5 U.S.C. 553(b) relating
to notice and public participation in connection with the adoption of
these amendments because the Board for good cause determined that
delaying implementation of the new primary and secondary credit rates
in order to allow notice and public comment would be unnecessary and
contrary to the public interest in fostering price stability and
sustainable economic growth. For these same reasons, the Board also has
not provided 30 days prior notice of the effective date of the rule
under section 553(d).
12 CFR Chapter II
List of Subjects in 12 CFR Part 201
Banks, Banking, Federal Reserve System, Reporting and
recordkeeping.
Authority and Issuance
0
For the reasons set forth in the preamble, the Board is amending 12 CFR
Chapter II to read as follows:
PART 201 EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION
A)
0
1. The authority citation for part 201 continues to read as follows:
Authority: 12 U.S.C. 248(i)-(j), 343 et seq., 347a, 347b, 347c,
348 et seq., 357, 374, 374a, and 461.
0
2. In Sec. 201.51, paragraphs (a) and (b) are revised to read as
follows:
Sec. 201.51 Interest rates applicable to credit extended by a Federal
Reserve Bank.\1\
---------------------------------------------------------------------------
\1\ The primary, secondary, and seasonal credit rates described
in this section apply to both advances and discounts made under the
primary, secondary, and seasonal credit programs, respectively.
---------------------------------------------------------------------------
(a) Primary credit. The interest rates for primary credit provided
to depository institutions under Sec. 201.4(a) are:
------------------------------------------------------------------------
Federal Reserve Bank Rate Effective
------------------------------------------------------------------------
Boston............................. 3.50 Jan. 30, 2008.
New York........................... 3.50 Jan. 30, 2008.
Philadelphia....................... 3.50 Jan. 30, 2008.
Cleveland.......................... 3.50 Jan. 30, 2008.
Richmond........................... 3.50 Jan. 31, 2008.
Atlanta............................ 3.50 Jan. 30, 2008.
Chicago............................ 3.50 Jan. 30, 2008.
St. Louis.......................... 3.50 Jan. 31, 2008.
Minneapolis........................ 3.50 Jan. 31, 2008.
Kansas City........................ 3.50 Jan. 30, 2008.
Dallas............................. 3.50 Jan. 31, 2008.
San Francisco...................... 3.50 Jan. 30, 2008.
------------------------------------------------------------------------
(b) Secondary credit. The interest rates for secondary credit
provided to depository institutions under 201.4(b) are:
------------------------------------------------------------------------
Federal Reserve Bank Rate Effective
------------------------------------------------------------------------
Boston............................. 4.00 Jan. 30, 2008.
New York........................... 4.00 Jan. 30, 2008.
Philadelphia....................... 4.00 Jan. 30, 2008.
Cleveland.......................... 4.00 Jan. 30, 2008.
Richmond........................... 4.00 Jan. 31, 2008.
Atlanta............................ 4.00 Jan. 30, 2008.
Chicago............................ 4.00 Jan. 30, 2008.
St. Louis.......................... 4.00 Jan. 31, 2008.
Minneapolis........................ 4.00 Jan. 31, 2008.
Kansas City........................ 4.00 Jan. 30, 2008.
Dallas............................. 4.00 Jan. 31, 2008.
San Francisco...................... 4.00 Jan. 30, 2008.
------------------------------------------------------------------------
* * * * *
By order of the Board of Governors of the Federal Reserve
System, February 4, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8-2209 Filed 2-6-08; 8:45 am]
BILLING CODE 6210-01-P
