Regulation D: Reserve Requirements of Depository Institutions, 13104-13105 [2018-06124]
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13104
Federal Register / Vol. 83, No. 59 / Tuesday, March 27, 2018 / Rules and Regulations
requirements relating to an initial and
final regulatory flexibility analysis do
not apply.
FEDERAL RESERVE SYSTEM
Paperwork Reduction Act
[Docket No. R–1602]
12 CFR Part 204
In accordance with the Paperwork
Reduction Act (‘‘PRA’’) of 1995,6 the
Board reviewed the final rule under the
authority delegated to the Board by the
Office of Management and Budget. The
final rule contains no requirements
subject to the PRA.
List of Subjects in 12 CFR Part 201
Banks, Banking, Federal Reserve
System, Reporting and recordkeeping.
Authority and Issuance
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)
1. The authority citation for part 201
continues to read as follows:
■
Authority: 12 U.S.C. 248(i)–(j) and (s), 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:
■
§ 201.51 Interest rates applicable to credit
extended by a Federal Reserve Bank.3
(a) Primary credit. The interest rate at
each Federal Reserve Bank for primary
credit provided to depository
institutions under § 201.4(a) is 2.25
percent.
(b) Secondary credit. The interest rate
at each Federal Reserve Bank for
secondary credit provided to depository
institutions under § 201.4(b) is 2.75
percent.
*
*
*
*
*
By order of the Board of Governors of the
Federal Reserve System, March 22, 2018.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2018–06123 Filed 3–26–18; 8:45 am]
amozie on DSK30RV082PROD with RULES
BILLING CODE 6210–01–P
6 44 U.S.C. 3506; see 5 CFR part 1320, appendix
A.1.
3 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.
17:36 Mar 26, 2018
Regulation D: Reserve Requirements
of Depository Institutions
Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
AGENCY:
The Board of Governors of the
Federal Reserve System (‘‘Board’’) is
amending Regulation D (Reserve
Requirements of Depository Institutions)
to revise the rate of interest paid on
balances maintained to satisfy reserve
balance requirements (‘‘IORR’’) and the
rate of interest paid on excess balances
(‘‘IOER’’) maintained at Federal Reserve
Banks by or on behalf of eligible
institutions. The final amendments
specify that IORR is 1.75 percent and
IOER is 1.75 percent, a 0.25 percentage
point increase from their prior levels.
The amendments are intended to
enhance the role of such rates of interest
in moving the Federal funds rate into
the target range established by the
Federal Open Market Committee
(‘‘FOMC’’ or ‘‘Committee’’).
DATES: The amendments to part 204
(Regulation D) are effective March 27,
2018. The IORR and IOER rate changes
are applicable on March 22, 2018.
FOR FURTHER INFORMATION CONTACT:
Sophia Allison, Special Counsel (202–
452–3565), or Clinton Chen, Senior
Attorney (202–452–3952), Legal
Division, or Kristen Payne, Financial
Analyst (202–452–2872), or Heather
Wiggins, Section Chief (202–452–3674),
Division of Monetary Affairs; for users
of Telecommunications Device for the
Deaf (TDD) only, contact 202–263–4869;
Board of Governors of the Federal
Reserve System, 20th and C Streets NW,
Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
SUMMARY:
12 CFR Chapter II
VerDate Sep<11>2014
RIN 7100 AF 01
Jkt 244001
I. Statutory and Regulatory Background
For monetary policy purposes, section
19 of the Federal Reserve Act (‘‘the
Act’’) imposes reserve requirements on
certain types of deposits and other
liabilities of depository institutions.1
Regulation D, which implements section
19 of the Act, requires that a depository
institution meet reserve requirements by
holding cash in its vault, or if vault cash
is insufficient, by maintaining a balance
in an account at a Federal Reserve Bank
(‘‘Reserve Bank’’).2 Section 19 also
1 12
2 12
PO 00000
U.S.C. 461(b).
CFR 204.5(a)(1).
Frm 00002
Fmt 4700
Sfmt 4700
provides that balances maintained by or
on behalf of certain institutions in an
account at a Reserve Bank may receive
earnings to be paid by the Reserve Bank
at least once each quarter, at a rate or
rates not to exceed the general level of
short-term interest rates.3 Institutions
that are eligible to receive earnings on
their balances held at Reserve Banks
(‘‘eligible institutions’’) include
depository institutions and certain other
institutions.4 Section 19 also provides
that the Board may prescribe regulations
concerning the payment of earnings on
balances at a Reserve Bank.5 Prior to
these amendments, Regulation D
specified a rate of 1.50 percent for both
IORR and IOER.6
II. Amendments to IORR and IOER
The Board is amending § 204.10(b)(5)
of Regulation D to specify that IORR is
1.75 percent and IOER is 1.75 percent.
This 0.25 percentage point increase in
the IORR and IOER was associated with
an increase in the target range for the
federal funds rate, from a target range of
11⁄4 to 11⁄2 percent to a target range of
11⁄2 to 13⁄4 percent, announced by the
FOMC on March 21, 2018, with an
effective date of March 22, 2018. The
FOMC’s press release on the same day
as the announcement noted that:
Information received since the
Federal Open Market Committee met in
January indicates that the labor market
has continued to strengthen and that
economic activity has been rising at a
moderate rate. Job gains have been
strong in recent months, and the
unemployment rate has stayed low.
Recent data suggest that growth rates of
household spending and business fixed
investment have moderated from their
strong fourth-quarter readings. On a 12month basis, both overall inflation and
inflation for items other than food and
energy have continued to run below 2
percent. Market-based measures of
inflation compensation have increased
in recent months but remain low;
survey-based measures of longer-term
inflation expectations are little changed,
on balance.
Consistent with its statutory mandate,
the Committee seeks to foster maximum
employment and price stability. The
economic outlook has strengthened in
recent months. The Committee expects
that, with further gradual adjustments in
the stance of monetary policy, economic
activity will expand at a moderate pace
in the medium term and labor market
3 12
U.S.C. 461(b)(1)(A) and (b)(12)(A).
12 U.S.C. 461(b)(1)(A) and (b)(12)(C); see
also 12 CFR 204.2(y).
5 See 12 U.S.C. 461(b)(12)(B).
6 See 12 CFR 204.10(b)(5).
4 See
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Federal Register / Vol. 83, No. 59 / Tuesday, March 27, 2018 / Rules and Regulations
conditions will remain strong. Inflation
on a 12-month basis is expected to move
up in coming months and to stabilize
around the Committee’s 2 percent
objective over the medium term. Nearterm risks to the economic outlook
appear roughly balanced, but the
Committee is monitoring inflation
developments closely.
In view of realized and expected labor
market conditions and inflation, the
Committee decided to raise the target
range for the federal funds rate to 11⁄2 to
13⁄4 percent. The stance of monetary
policy remains accommodative, thereby
supporting strong labor market
conditions and a sustained return to 2
percent inflation. A Federal Reserve
Implementation note released
simultaneously with the announcement
stated that:
The Board of Governors of the Federal
Reserve System voted unanimously to raise
the interest rate paid on required and excess
reserve balances to 1.75 percent, effective
March 22, 2018.
amozie on DSK30RV082PROD with RULES
As a result, the Board is amending
§ 204.10(b)(5) of Regulation D to change
IORR to 1.75 percent and IOER to 1.75
percent.
III. Administrative Procedure Act
In general, the Administrative
Procedure Act (‘‘APA’’) 7 imposes three
principal requirements when an agency
promulgates legislative rules (rules
made pursuant to congressionally
delegated authority): (1) Publication
with adequate notice of a proposed rule;
(2) followed by a meaningful
opportunity for the public to comment
on the rule’s content; and (3)
publication of the final rule not less
than 30 days before its effective date.
The APA provides that notice and
comment procedures do not apply if the
agency for good cause finds them to be
‘‘unnecessary, impracticable, or contrary
to the public interest.’’ 8 Section 553(d)
of the APA also provides that
publication at least 30 days prior to a
rule’s effective date is not required for
(1) a substantive rule which grants or
recognizes an exemption or relieves a
restriction; (2) interpretive rules and
statements of policy; or (3) a rule for
which the agency finds of good cause
for shortened notice and publishes its
reasoning with the rule.9
The Board has determined that good
cause exists for finding that the notice,
public comment, and delayed effective
date provisions of the APA are
unnecessary, impracticable, or contrary
to the public interest with respect to
U.S.C. 551 et seq.
U.S.C. 553(b)(3)(A).
9 5 U.S.C. 553(d).
these final amendments to Regulation D.
The rate increases for IORR and IOER
that are reflected in the final
amendments to Regulation D were made
with a view towards accommodating
commerce and business and with regard
to their bearing upon the general credit
situation of the country. Notice and
public comment would prevent the
Board’s action from being effective as
promptly as necessary in the public
interest, and would not otherwise serve
any useful purpose. Notice, public
comment, and a delayed effective date
would create uncertainty about the
finality and effectiveness of the Board’s
action and undermine the effectiveness
of that action. Accordingly, the Board
has determined that good cause exists to
dispense with the notice, public
comment, and delayed effective date
procedures of the APA with respect to
these final amendments to Regulation D.
§ 204.10
IV. Regulatory Flexibility Analysis
The Regulatory Flexibility Act
(‘‘RFA’’) does not apply to a rulemaking
where a general notice of proposed
rulemaking is not required.10 As noted
previously, the Board has determined
that it is unnecessary and contrary to
the public interest to publish a general
notice of proposed rulemaking for this
final rule. Accordingly, the RFA’s
requirements relating to an initial and
final regulatory flexibility analysis do
not apply.
Food and Drug Administration
V. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act (‘‘PRA’’) of 1995,11 the
Board reviewed the final rule under the
authority delegated to the Board by the
Office of Management and Budget. The
final rule contains no requirements
subject to the PRA.
List of Subjects in 12 CFR Part 204
Banks, Banking, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, the Board amends 12 CFR
part 204 as follows:
PART 204—RESERVE
REQUIREMENTS OF DEPOSITORY
INSTITUTIONS (REGULATION D)
1. The authority citation for part 204
continues to read as follows:
■
Authority: 12 U.S.C. 248(a), 248(c), 461,
601, 611, and 3105.
2. Section 204.10 is amended by
revising paragraph (b)(5) to read as
follows:
■
75
10 5
85
11 44
VerDate Sep<11>2014
17:36 Mar 26, 2018
U.S.C. 603 and 604.
U.S.C. 3506; see 5 CFR part 1320, appendix
A.1.
Jkt 244001
13105
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
*
Payment of interest on balances.
*
*
*
*
(b) * * *
(5) The rates for IORR and IOER are:
Rate
(%)
IORR .....................................
IOER .....................................
*
*
*
*
1.75
1.75
*
By order of the Board of Governors of the
Federal Reserve System, March 22, 2018.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2018–06124 Filed 3–26–18; 8:45 am]
BILLING CODE 6210–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
21 CFR Part 5
[Docket No. FDA–2018–N–0011]
Revision of Organization; Technical
Amendment
AGENCY:
Food and Drug Administration,
HHS.
Final rule; technical
amendment.
ACTION:
The Food and Drug
Administration (FDA or Agency) is
amending its regulations to reflect
organizational change for the Office of
Regulatory Policy, Center for Drug
Evaluation and Research (CDER), Office
of Medical Products and Tobacco. FDA
is taking this action to ensure accuracy
and clarity in the Agency’s regulations.
DATES: This rule is effective March 27,
2018.
FOR FURTHER INFORMATION CONTACT:
Florine Purdie, Center for Drug
Evaluation and Research, Food and
Drug Administration, 10903 New
Hampshire Ave. Bldg. 51, Rm. 6248,
Silver Spring, MD 20993–0002, 301–
796–3601.
SUPPLEMENTARY INFORMATION: FDA is
amending 21 CFR 5.1100 to update the
organizational information for the Office
of Regulatory Policy, CDER, Office of
Medical Products and Tobacco.
Publication of this document
constitutes final action on this change
under the Administrative Procedure Act
(5 U.S.C. 553). FDA has determined that
notice and public comment are
unnecessary because this amendment to
the regulations provides only a
technical change to update the
SUMMARY:
E:\FR\FM\27MRR1.SGM
27MRR1
]]>Agencies
[Federal Register Volume 83, Number 59 (Tuesday, March 27, 2018)]
[Rules and Regulations]
[Pages 13104-13105]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06124]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R-1602]
RIN 7100 AF 01
Regulation D: Reserve Requirements of Depository Institutions
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System
(``Board'') is amending Regulation D (Reserve Requirements of
Depository Institutions) to revise the rate of interest paid on
balances maintained to satisfy reserve balance requirements (``IORR'')
and the rate of interest paid on excess balances (``IOER'') maintained
at Federal Reserve Banks by or on behalf of eligible institutions. The
final amendments specify that IORR is 1.75 percent and IOER is 1.75
percent, a 0.25 percentage point increase from their prior levels. The
amendments are intended to enhance the role of such rates of interest
in moving the Federal funds rate into the target range established by
the Federal Open Market Committee (``FOMC'' or ``Committee'').
DATES: The amendments to part 204 (Regulation D) are effective March
27, 2018. The IORR and IOER rate changes are applicable on March 22,
2018.
FOR FURTHER INFORMATION CONTACT: Sophia Allison, Special Counsel (202-
452-3565), or Clinton Chen, Senior Attorney (202-452-3952), Legal
Division, or Kristen Payne, Financial Analyst (202-452-2872), or
Heather Wiggins, Section Chief (202-452-3674), Division of Monetary
Affairs; for users of Telecommunications Device for the Deaf (TDD)
only, contact 202-263-4869; Board of Governors of the Federal Reserve
System, 20th and C Streets NW, Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Background
For monetary policy purposes, section 19 of the Federal Reserve Act
(``the Act'') imposes reserve requirements on certain types of deposits
and other liabilities of depository institutions.\1\ Regulation D,
which implements section 19 of the Act, requires that a depository
institution meet reserve requirements by holding cash in its vault, or
if vault cash is insufficient, by maintaining a balance in an account
at a Federal Reserve Bank (``Reserve Bank'').\2\ Section 19 also
provides that balances maintained by or on behalf of certain
institutions in an account at a Reserve Bank may receive earnings to be
paid by the Reserve Bank at least once each quarter, at a rate or rates
not to exceed the general level of short-term interest rates.\3\
Institutions that are eligible to receive earnings on their balances
held at Reserve Banks (``eligible institutions'') include depository
institutions and certain other institutions.\4\ Section 19 also
provides that the Board may prescribe regulations concerning the
payment of earnings on balances at a Reserve Bank.\5\ Prior to these
amendments, Regulation D specified a rate of 1.50 percent for both IORR
and IOER.\6\
---------------------------------------------------------------------------
\1\ 12 U.S.C. 461(b).
\2\ 12 CFR 204.5(a)(1).
\3\ 12 U.S.C. 461(b)(1)(A) and (b)(12)(A).
\4\ See 12 U.S.C. 461(b)(1)(A) and (b)(12)(C); see also 12 CFR
204.2(y).
\5\ See 12 U.S.C. 461(b)(12)(B).
\6\ See 12 CFR 204.10(b)(5).
---------------------------------------------------------------------------
II. Amendments to IORR and IOER
The Board is amending Sec. 204.10(b)(5) of Regulation D to specify
that IORR is 1.75 percent and IOER is 1.75 percent. This 0.25
percentage point increase in the IORR and IOER was associated with an
increase in the target range for the federal funds rate, from a target
range of 1\1/4\ to 1\1/2\ percent to a target range of 1\1/2\ to 1\3/4\
percent, announced by the FOMC on March 21, 2018, with an effective
date of March 22, 2018. The FOMC's press release on the same day as the
announcement noted that:
Information received since the Federal Open Market Committee met in
January indicates that the labor market has continued to strengthen and
that economic activity has been rising at a moderate rate. Job gains
have been strong in recent months, and the unemployment rate has stayed
low. Recent data suggest that growth rates of household spending and
business fixed investment have moderated from their strong fourth-
quarter readings. On a 12-month basis, both overall inflation and
inflation for items other than food and energy have continued to run
below 2 percent. Market-based measures of inflation compensation have
increased in recent months but remain low; survey-based measures of
longer-term inflation expectations are little changed, on balance.
Consistent with its statutory mandate, the Committee seeks to
foster maximum employment and price stability. The economic outlook has
strengthened in recent months. The Committee expects that, with further
gradual adjustments in the stance of monetary policy, economic activity
will expand at a moderate pace in the medium term and labor market
[[Page 13105]]
conditions will remain strong. Inflation on a 12-month basis is
expected to move up in coming months and to stabilize around the
Committee's 2 percent objective over the medium term. Near-term risks
to the economic outlook appear roughly balanced, but the Committee is
monitoring inflation developments closely.
In view of realized and expected labor market conditions and
inflation, the Committee decided to raise the target range for the
federal funds rate to 1\1/2\ to 1\3/4\ percent. The stance of monetary
policy remains accommodative, thereby supporting strong labor market
conditions and a sustained return to 2 percent inflation. A Federal
Reserve Implementation note released simultaneously with the
announcement stated that:
The Board of Governors of the Federal Reserve System voted
unanimously to raise the interest rate paid on required and excess
reserve balances to 1.75 percent, effective March 22, 2018.
As a result, the Board is amending Sec. 204.10(b)(5) of Regulation
D to change IORR to 1.75 percent and IOER to 1.75 percent.
III. Administrative Procedure Act
In general, the Administrative Procedure Act (``APA'') \7\ imposes
three principal requirements when an agency promulgates legislative
rules (rules made pursuant to congressionally delegated authority): (1)
Publication with adequate notice of a proposed rule; (2) followed by a
meaningful opportunity for the public to comment on the rule's content;
and (3) publication of the final rule not less than 30 days before its
effective date. The APA provides that notice and comment procedures do
not apply if the agency for good cause finds them to be ``unnecessary,
impracticable, or contrary to the public interest.'' \8\ Section 553(d)
of the APA also provides that publication at least 30 days prior to a
rule's effective date is not required for (1) a substantive rule which
grants or recognizes an exemption or relieves a restriction; (2)
interpretive rules and statements of policy; or (3) a rule for which
the agency finds of good cause for shortened notice and publishes its
reasoning with the rule.\9\
---------------------------------------------------------------------------
\7\ 5 U.S.C. 551 et seq.
\8\ 5 U.S.C. 553(b)(3)(A).
\9\ 5 U.S.C. 553(d).
---------------------------------------------------------------------------
The Board has determined that good cause exists for finding that
the notice, public comment, and delayed effective date provisions of
the APA are unnecessary, impracticable, or contrary to the public
interest with respect to these final amendments to Regulation D. The
rate increases for IORR and IOER that are reflected in the final
amendments to Regulation D were made with a view towards accommodating
commerce and business and with regard to their bearing upon the general
credit situation of the country. Notice and public comment would
prevent the Board's action from being effective as promptly as
necessary in the public interest, and would not otherwise serve any
useful purpose. Notice, public comment, and a delayed effective date
would create uncertainty about the finality and effectiveness of the
Board's action and undermine the effectiveness of that action.
Accordingly, the Board has determined that good cause exists to
dispense with the notice, public comment, and delayed effective date
procedures of the APA with respect to these final amendments to
Regulation D.
IV. Regulatory Flexibility Analysis
The Regulatory Flexibility Act (``RFA'') does not apply to a
rulemaking where a general notice of proposed rulemaking is not
required.\10\ As noted previously, the Board has determined that it is
unnecessary and contrary to the public interest to publish a general
notice of proposed rulemaking for this final rule. Accordingly, the
RFA's requirements relating to an initial and final regulatory
flexibility analysis do not apply.
---------------------------------------------------------------------------
\10\ 5 U.S.C. 603 and 604.
---------------------------------------------------------------------------
V. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act (``PRA'') of
1995,\11\ the Board reviewed the final rule under the authority
delegated to the Board by the Office of Management and Budget. The
final rule contains no requirements subject to the PRA.
---------------------------------------------------------------------------
\11\ 44 U.S.C. 3506; see 5 CFR part 1320, appendix A.1.
---------------------------------------------------------------------------
List of Subjects in 12 CFR Part 204
Banks, Banking, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, the Board amends 12 CFR
part 204 as follows:
PART 204--RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS
(REGULATION D)
0
1. The authority citation for part 204 continues to read as follows:
Authority: 12 U.S.C. 248(a), 248(c), 461, 601, 611, and 3105.
0
2. Section 204.10 is amended by revising paragraph (b)(5) to read as
follows:
Sec. 204.10 Payment of interest on balances.
* * * * *
(b) * * *
(5) The rates for IORR and IOER are:
------------------------------------------------------------------------
Rate (%)
------------------------------------------------------------------------
IORR.................................................... 1.75
IOER.................................................... 1.75
------------------------------------------------------------------------
* * * * *
By order of the Board of Governors of the Federal Reserve
System, March 22, 2018.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2018-06124 Filed 3-26-18; 8:45 am]
BILLING CODE 6210-01-P
