Regulation D: Reserve Requirements of Depository Institutions, 49473-49475 [2018-21435]
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Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Rules and Regulations
amozie on DSK3GDR082PROD with RULES
secondary credit. The amendments to
Regulation A reflect these rate changes.
The 1⁄4 percentage point increase in
the primary credit rate was associated
with an increase in the target range for
the federal funds rate (from a target
range of 13⁄4 to 2 percent to a target
range of 2 to 21⁄4 percent) announced by
the Federal Open Market Committee on
September 26, 2018, as described in the
Board’s amendment of its Regulation D
regulations published elsewhere in this
issue of the Federal Register.
Administrative Procedure Act
In general, the Administrative
Procedure Act (‘‘APA’’) 1 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.’’ 2 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 good cause for
shortened notice and publishes its
reasoning with the rule.3 The APA
further provides that the notice, public
comment, and delayed effective date
requirements of 5 U.S.C. 553 do not
apply ‘‘to the extent that there is
involved . . . a matter relating to agency
management or personnel or to public
property, loans, grants, benefits, or
contracts.’’ 4
Regulation A establishes the interest
rates that the twelve Reserve Banks
charge for extensions of primary credit
and secondary credit. The Board has
determined that the notice, public
comment, and delayed effective date
requirements of the APA do not apply
to these final amendments to Regulation
A for several reasons. The amendments
involve a matter relating to loans and
are therefore exempt under the terms of
the APA. In addition, the Board has
determined that notice, public
comment, and delayed effective date
U.S.C. 551 et seq.
U.S.C. 553(b)(3)(A).
3 5 U.S.C. 553(d).
4 5 U.S.C. 553(a)(2) (emphasis added).
would be unnecessary and contrary to
the public interest because delay in
implementation of changes to the rates
charged on primary credit and
secondary credit would permit insured
depository institutions to profit
improperly from the difference in the
current rate and the announced
increased rate. Finally, because delay
would undermine the Board’s action in
responding to economic data and
conditions, the Board has determined
that ‘‘good cause’’ exists within the
meaning of the APA to dispense with
the notice, public comment, and
delayed effective date procedures of the
APA with respect to the final
amendments to Regulation A.
Regulatory Flexibility Analysis
The Regulatory Flexibility Act
(‘‘RFA’’) does not apply to a rulemaking
where a general notice of proposed
rulemaking is not required.5 As noted
previously, a general notice of proposed
rulemaking is not required if the final
rule involves a matter relating to loans.
Furthermore, 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.
Paperwork Reduction Act
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 part 201 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:
■
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U.S.C. 603, 604.
U.S.C. 3506; see 5 CFR part 1320, appendix
6 44
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49473
§ 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 2.75
percent.
(b) Secondary credit. The interest rate
at each Federal Reserve Bank for
secondary credit provided to depository
institutions under § 201.4(b) is 3.25
percent.
*
*
*
*
*
By order of the Board of Governors of the
Federal Reserve System, September 27, 2018.
Ann Misback,
Secretary of the Board.
[FR Doc. 2018–21436 Filed 10–1–18; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R–1624]
RIN 7100–AF 18
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 2.20 percent and
IOER is 2.20 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: Effective date: The amendments
to part 204 (Regulation D) are effective
October 2, 2018.
Applicability date: The IORR and
IOER rate changes were applicable on
September 27, 2018.
FOR FURTHER INFORMATION CONTACT:
Sophia Allison, Senior Special Counsel
SUMMARY:
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.
E:\FR\FM\02OCR1.SGM
02OCR1
49474
Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Rules and Regulations
(202–452–3565), Legal Division, or
Kristen Payne, Senior Financial
Institution & Policy Analyst (202–452–
2872), or Mary-Frances Styczynski,
Section Chief (202–452–3303), 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 1.95 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
2.20 percent and IOER is 2.20 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
13⁄4 to 2 percent to a target range of 2
to 21⁄4 percent, announced by the FOMC
on September 26, 2018, with an
effective date of September 27, 2018.
The FOMC’s press release on the same
day as the announcement noted that:
amozie on DSK3GDR082PROD with RULES
Information received since the Federal
Open Market Committee met in August
1 12
U.S.C. 461(b).
CFR 204.5(a)(1).
3 12 U.S.C. 461(b)(1)(A) & (b)(12)(A).
4 See 12 U.S.C. 461(b)(1)(A) & (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).
2 12
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16:20 Oct 01, 2018
Jkt 247001
indicates that the labor market has continued
to strengthen and that economic activity has
been rising at a strong rate. Job gains have
been strong, on average, in recent months,
and the unemployment rate has stayed low.
Household spending and business fixed
investment have grown strongly. On a 12month basis, both overall inflation and
inflation for items other than food and energy
remain near 2 percent. Indicators of longerterm inflation expectations are little changed,
on balance.
Consistent with its statutory mandate, the
Committee seeks to foster maximum
employment and price stability. The
Committee expects that further gradual
increases in the target range for the federal
funds rate will be consistent with sustained
expansion of economic activity, strong labor
market conditions, and inflation near the
Committee’s symmetric 2 percent objective
over the medium term. Risks to the economic
outlook appear roughly balanced.
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 2 to 21⁄4 percent.
A Federal Reserve Implementation
note released simultaneously with the
announcement stated that the Board
‘‘voted unanimously to raise the interest
rate paid on required and excess reserve
balances to 2.20 percent, effective
September 27, 2018.’’
As a result, the Board is amending
§ 204.10(b)(5) of Regulation D to change
IORR to 2.20 percent and IOER to 2.20
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 good cause for
shortened notice and publishes its
reasoning with the rule.9
U.S.C. 551 et seq.
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.
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:
■
75
10 5
85
11 44
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Fmt 4700
U.S.C. 603, 604.
U.S.C. 3506; see 5 CFR part 1320, appendix
A.1.
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Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Rules and Regulations
Authority: 12 U.S.C. 248(a), 248(c), 461,
601, 611, and 3105.
airplanes, and that the AFM may have
been erroneously revised on certain
airplanes not equipped with a BUSS
function. We are issuing this AD to
address the unsafe condition on these
products.
2. Section 204.10 is amended by
revising paragraph (b)(5) to read as
follows:
■
Standards Branch, FAA, 2200 South
216th St., Des Moines, WA 98351;
telephone and fax 206–231–3223.
SUPPLEMENTARY INFORMATION:
Discussion
We issued AD 2018–02–18,
DATES: This AD is effective October 17,
Amendment
39–19171 (83 FR 5182,
*
*
*
*
*
2018.
February 6, 2018) (‘‘AD 2018–02–18’’),
(b) * * *
We must receive comments on this
which applied to certain Airbus SAS
(5) The rates for IORR and IOER are:
AD by November 16, 2018.
Model A318, A319, and A320 series
ADDRESSES: You may send comments,
airplanes and Model A321–111, –112,
Rate
using the procedures found in 14 CFR
(percent)
–131, –211, –212, –213, –231, and –232
11.43 and 11.45, by any of the following
airplanes. AD 2018–02–18 was
IORR ...........................................
2.20 methods:
prompted by a determination that when
•
Federal
eRulemaking
Portal:
Go
to
IOER ...........................................
2.20
two AoA sensors are adversely affected
https://www.regulations.gov. Follow the
by icing conditions at the same time,
instructions for submitting comments.
*
*
*
*
*
data displayed on the BUSS could be
• Fax: 202–493–2251.
By order of the Board of Governors of the
erroneous. AD 2018–02–18 required
•
Mail:
U.S.
Department
of
Federal Reserve System, September 27, 2018.
revising the AFM to provide guidance to
Transportation, Docket Operations,
Ann Misback,
the flightcrew for emergency procedures
M–30, West Building Ground Floor,
Secretary of the Board.
when erroneous airspeed indications are
Room W12–140, 1200 New Jersey
[FR Doc. 2018–21435 Filed 10–1–18; 8:45 am]
displayed on the BUSS. We issued AD
Avenue SE, Washington, DC 20590.
2018–02–18 to address erroneous
BILLING CODE 6210–01–P
• Hand Delivery: U.S. Department of
airspeed data displays, which could
Transportation, Docket Operations,
lead to an increased flightcrew
M–30, West Building Ground Floor,
workload, possibly resulting in reduced
DEPARTMENT OF TRANSPORTATION Room W12–140, 1200 New Jersey
Avenue SE, Washington, DC, between 9 control of the airplane.
Since we issued AD 2018–02–18, we
Federal Aviation Administration
a.m. and 5 p.m., Monday through
have determined that airplanes on
Friday, except Federal holidays.
which Airbus Service Bulletin A320–
14 CFR Part 39
For service information identified in
34–1543 was embodied in service are
this
final
rule,
contact
Airbus
SAS,
[Docket No. FAA–2018–0804; Product
also subject to the unsafe condition, and
Airworthiness Office—EIAS, RondIdentifier 2018–NM–129–AD; Amendment
that the AFM may have been
Point
Emile
Dewoitine
No:
2,
31700
39–19442; AD 2018–20–08]
Blagnac Cedex, France; telephone +33 5 erroneously revised on certain airplanes
RIN 2120–AA64
61 93 36 96; fax +33 5 61 93 44 51; email not equipped with a BUSS function.
The European Aviation Safety Agency
account.airworth-eas@airbus.com;
Airworthiness Directives; Airbus SAS
(EASA), which is the Technical Agent
internet
https://www.airbus.com.
You
Airplanes
for the Member States of the European
may view this referenced service
Union, has issued EASA AD 2018–0189,
information at the FAA, Transport
AGENCY: Federal Aviation
Standards Branch, 2200 South 216th St., dated August 30, 2018 (referred to after
Administration (FAA), Department of
Des Moines, WA. For information on the this as the Mandatory Continuing
Transportation (DOT).
Airworthiness Information, or ‘‘the
availability of this material at the FAA,
ACTION: Final rule; request for
MCAI’’), to correct an unsafe condition
call
206–231–3195.
It
is
also
available
comments.
for all Airbus SAS Model A318, A319,
on the internet at https://
and A320 series airplanes and Model
SUMMARY: We are superseding
www.regulations.gov by searching for
A321–111, –112, –131, –211, –212,
Airworthiness Directive (AD) 2018–02–
and locating Docket No. FAA–2018–
–213, –231, and –232 airplanes. The
18, which applied to certain Airbus SAS 0804.
MCAI states:
Model A318, A319, and A320 series
Examining the AD Docket
airplanes and Model A321–111, –112,
In extreme icing conditions, pitot probes
You may examine the AD docket on
may induce erroneous airspeed indications.
–131, –211, –212, –213, –231, and –232
To provide flight crews with reliable
the internet at https://
airplanes. AD 2018–02–18 required
information on airspeed, Airbus developed a
www.regulations.gov by searching for
revising the airplane flight manual
Back-up Speed Scale (BUSS and reversible
and locating Docket No. FAA–2018–
(AFM) to provide guidance to the
BUSS, based on angle of attack (AoA) value)
0804;
or
in
person
at
the
Docket
flightcrew for certain emergency
displayed on the Primary Flight Display
Management Facility between 9 a.m.
procedures. This new AD requires
(PFD), together with a PFD Back-Up Altitude
and
5
p.m.,
Monday
through
Friday,
revising the AFM, and for certain
Scale based on Global Positioning System
except Federal holidays. The AD docket (GPS) altitude. This BUSS function is
airplanes, removing a certain AFM
revision. This AD also adds airplanes to contains this AD, the regulatory
intended to be used below flight level (FL)
evaluation, any comments received, and 250 only. Following new investigation
the applicability. This AD was
prompted by a determination that, when other information. The street address for related to AoA probes blockages, it was
the Docket Operations office (telephone identified that, when two AoA sensors are
two angle of attack (AoA) sensors are
adversely affected by icing conditions at the
adversely affected by icing conditions at 800–647–5527) is in the ADDRESSES
same time, data displayed on the BUSS could
section. Comments will be available in
the same time, data displayed on the
be erroneous.
the
AD
docket
shortly
after
receipt.
back up speed scale (BUSS) could be
This condition, if not corrected, could lead
erroneous. This AD was also prompted
FOR FURTHER INFORMATION CONTACT:
to an increased flight crew workload,
by a determination that the AFM needs
Sanjay Ralhan, Aerospace Engineer,
possibly resulting in reduced control of the
to be revised for certain additional
International Section, Transport
aeroplane.
§ 204.10
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49475
Payment of interest on balances.
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]]>Agencies
[Federal Register Volume 83, Number 191 (Tuesday, October 2, 2018)]
[Rules and Regulations]
[Pages 49473-49475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21435]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R-1624]
RIN 7100-AF 18
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 2.20 percent and IOER is 2.20
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: Effective date: The amendments to part 204 (Regulation D) are
effective October 2, 2018.
Applicability date: The IORR and IOER rate changes were applicable
on September 27, 2018.
FOR FURTHER INFORMATION CONTACT: Sophia Allison, Senior Special Counsel
[[Page 49474]]
(202-452-3565), Legal Division, or Kristen Payne, Senior Financial
Institution & Policy Analyst (202-452-2872), or Mary-Frances
Styczynski, Section Chief (202-452-3303), 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 1.95 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) & (b)(12)(A).
\4\ See 12 U.S.C. 461(b)(1)(A) & (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 2.20 percent and IOER is 2.20 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\3/4\ to 2 percent to a target range of 2 to 2\1/4\ percent,
announced by the FOMC on September 26, 2018, with an effective date of
September 27, 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 August indicates that the labor market has continued to
strengthen and that economic activity has been rising at a strong
rate. Job gains have been strong, on average, in recent months, and
the unemployment rate has stayed low. Household spending and
business fixed investment have grown strongly. On a 12-month basis,
both overall inflation and inflation for items other than food and
energy remain near 2 percent. Indicators 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 Committee expects
that further gradual increases in the target range for the federal
funds rate will be consistent with sustained expansion of economic
activity, strong labor market conditions, and inflation near the
Committee's symmetric 2 percent objective over the medium term.
Risks to the economic outlook appear roughly balanced.
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 2 to 2\1/4\ percent.
A Federal Reserve Implementation note released simultaneously with
the announcement stated that the Board ``voted unanimously to raise the
interest rate paid on required and excess reserve balances to 2.20
percent, effective September 27, 2018.''
As a result, the Board is amending Sec. 204.10(b)(5) of Regulation
D to change IORR to 2.20 percent and IOER to 2.20 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 good cause for shortened notice and publishes its
reasoning with the rule.\9\
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\7\ 5 U.S.C. 551 et seq.
\8\ 5 U.S.C. 553(b)(3)(A).
\9\ 5 U.S.C. 553(d).
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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.
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\10\ 5 U.S.C. 603, 604.
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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.
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\11\ 44 U.S.C. 3506; see 5 CFR part 1320, appendix A.1.
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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:
[[Page 49475]]
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
(percent)
------------------------------------------------------------------------
IORR........................................................ 2.20
IOER........................................................ 2.20
------------------------------------------------------------------------
* * * * *
By order of the Board of Governors of the Federal Reserve
System, September 27, 2018.
Ann Misback,
Secretary of the Board.
[FR Doc. 2018-21435 Filed 10-1-18; 8:45 am]
BILLING CODE 6210-01-P
