Regulation D: Reserve Requirements of Depository Institutions, 59924-59926 [2019-24272]
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59924
Federal Register / Vol. 84, No. 216 / Thursday, November 7, 2019 / Rules and Regulations
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: 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.
On October 30, 2019, the Board voted
to approve a 1⁄4 percentage point
decrease in the primary credit rate in
effect at each of the twelve Federal
Reserve Banks, thereby decreasing from
2.50 percent to 2.25 percent the rate that
each Reserve Bank charges for
extensions of primary credit. In
addition, the Board had previously
approved the renewal of the secondary
credit rate formula, the primary credit
rate plus 50 basis points. Under the
formula, the secondary credit rate in
effect at each of the twelve Federal
Reserve Banks decreased by 1⁄4
percentage point as a result of the
Board’s primary credit rate action,
thereby decreasing from 3.00 percent to
2.75 percent the rate that each Reserve
Bank charges for extensions of
secondary credit. The amendments to
Regulation A reflect these rate changes.
The 1⁄4 percentage point decrease in
the primary credit rate was associated
with a decrease in the target range for
the federal funds rate (from a target
range of 13⁄4 to 2 percent to a target
range of 11⁄2 to 13⁄4 percent) announced
by the Federal Open Market Committee
on October 30, 2019, as described in the
Board’s amendment of its Regulation D
published elsewhere in today’s 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 Congressionallydelegated 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
15
U.S.C. 551 et seq.
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Jkt 250001
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. The amendments involve a matter
relating to loans and are therefore
exempt under the terms of the APA.
Furthermore, 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.
25
U.S.C. 553(b)(3)(A).
U.S.C. 553(d).
4 5 U.S.C. 553(a)(2) (emphasis added).
5 5 U.S.C. 603, 604.
35
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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.
12 CFR Chapter II
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 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), 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, November 1, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019–24273 Filed 11–6–19; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R–1684; RIN 7100–AF 64]
Regulation D: Reserve Requirements
of Depository Institutions
Board of Governors of the
Federal Reserve System.
AGENCY:
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.
E:\FR\FM\07NOR1.SGM
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Federal Register / Vol. 84, No. 216 / Thursday, November 7, 2019 / Rules and Regulations
ACTION:
Final rule.
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 1.55 percent and
IOER is 1.55 percent, a 0.25 percentage
point decrease 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
November 7, 2019.
Applicability date: The IORR and
IOER rate changes are applicable
beginning October 31, 2019.
FOR FURTHER INFORMATION CONTACT:
Sophia H. Allison, Senior Special
Counsel (202–452–3565), or Justyna
Bolter, Senior Attorney (202–452–2686),
Legal Division, or Francis Martinez,
Senior Financial Institution & Policy
Analyst (202–245–4217), or Laura
Lipscomb, Assistant Director (202–912–
7964), 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:
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
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).
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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 1.80 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
1.55 percent and IOER is 1.55 percent.
This 0.25 percentage point decrease in
each rate was associated with a decrease
in the target range for the federal funds
rate, from a target range of 13⁄4 to 2
percent to a target range of 11⁄2 to 13⁄4
percent, announced by the FOMC on
October 30, 2019, with an effective date
of October 31, 2019. The FOMC’s press
release on the same day as the
announcement noted that:
Information received since the Federal
Open Market Committee met in September
indicates that the labor market remains
strong and that economic activity has been
rising at a moderate rate. Job gains have been
solid, on average, in recent months, and the
unemployment rate has remained low.
Although household spending has been
rising at a strong pace, business fixed
investment and exports remain weak. On a
12-month basis, overall inflation and
inflation for items other than food and energy
are running below 2 percent. Market-based
measures of inflation compensation remain
low; survey-based measures of longer-term
inflation expectations are little changed.
Consistent with its statutory mandate, the
Committee seeks to foster maximum
employment and price stability. In light of
the implications of global developments for
the economic outlook as well as muted
inflation pressures, the Committee decided to
lower the target range for the federal funds
rate to 11⁄2 to 13⁄4 percent. This action
supports the Committee’s view that sustained
expansion of economic activity, strong labor
market conditions, and inflation near the
Committee’s symmetric 2 percent objective
are the most likely outcomes, but
uncertainties about this outlook remain. The
Committee will continue to monitor the
implications of incoming information for the
economic outlook as it assesses the
appropriate path of the target range for the
federal funds rate.
A Federal Reserve Implementation
note released simultaneously with the
announcement stated:
The Board of Governors of the Federal
Reserve System voted unanimously to lower
the interest rate paid on required and excess
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).
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59925
reserve balances to 1.55 percent, effective
October 31, 2019.
As a result, the Board is amending
§ 204.10(b)(5) of Regulation D to change
IORR to 1.55 percent and IOER to 1.55
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 Congressionallydelegated 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
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 changes 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.
75
U.S.C. 551 et seq.
U.S.C. 553(b)(3)(A).
9 5 U.S.C. 553(d).
85
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59926
Federal Register / Vol. 84, No. 216 / Thursday, November 7, 2019 / Rules and Regulations
IV. Regulatory Flexibility Analysis
DEPARTMENT OF TRANSPORTATION
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.
Federal Aviation 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.
14 CFR Part 39
[Docket No. FAA–2019–0853; Product
Identifier 2019–CE–036–AD; Amendment
39–19774; AD 2019–21–08]
RIN 2120–AA64
Airworthiness Directives; Textron
Aviation Inc. (Type Certificate
Previously Held by Beechcraft
Corporation) Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule; request for
comments.
AGENCY:
Discussion
The FAA is adopting a new
airworthiness directive (AD) for Textron
Aviation Inc. (Textron) Models E33,
E33A, E33C, F33, G33, 35–C33, 35–
List of Subjects in 12 CFR Part 204
C33A, K35, M35, N35, P35, S35, V35,
V35A, 36, and certain Models F33A,
Banks, Banking, Reporting and
F33C, V35B, and A36 airplanes. This
recordkeeping requirements.
AD requires inspecting the right aileron
For the reasons set forth in the
flight control cable end fittings (terminal
preamble, the Board amends 12 CFR
attachment fittings) and replacing any
part 204 as follows:
damaged cable assembly. This AD was
prompted by reports of cracked and
PART 204—RESERVE
fractured right aileron flight control
REQUIREMENTS OF DEPOSITORY
cable end fittings. The FAA is issuing
INSTITUTIONS (REGULATION D)
this AD to address the unsafe condition
on these products.
■ 1. The authority citation for part 204
DATES
: This AD is effective November
continues to read as follows:
22, 2019.
Authority: 12 U.S.C. 248(a), 248(c), 461,
The FAA must receive comments on
601, 611, and 3105.
this AD by December 23, 2019.
■ 2. Section 204.10 is amended by
ADDRESSES: You may send comments,
revising paragraph (b)(5) to read as
using the procedures found in 14 CFR
follows:
11.43 and 11.45, by any of the following
methods:
§ 204.10 Payment of interest on balances.
• Federal eRulemaking Portal: Go to
*
*
*
*
*
https://www.regulations.gov. Follow the
(b) * * *
instructions for submitting comments.
• Fax: 202–493–2251.
(5) The rates for IORR and IOER are:
• Mail: U.S. Department of
Transportation, Docket Operations, M–
TABLE 1 TO PARAGRAPH (B)(5)
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Rate
(percent)
Washington, DC 20590.
• Hand Delivery: U.S. Department of
IORR ...........................................
1.55 Transportation, Docket Operations, M–
IOER ...........................................
1.55
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
*
*
*
*
*
Washington, DC 20590, between 9 a.m.
By order of the Board of Governors of the
and 5 p.m., Monday through Friday,
Federal Reserve System, November 1, 2019.
except Federal holidays.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019–24272 Filed 11–6–19; 8:45 am]
BILLING CODE 6210–01–P
10 5
U.S.C. 603, 604.
U.S.C. 3506; see 5 CFR part 1320 appendix
11 44
A.1.
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15:54 Nov 06, 2019
Jkt 250001
through Friday, except Federal holidays.
The AD docket contains this final rule,
the regulatory evaluation, any
comments received, and other
information. The street address for the
Docket Operations is listed above.
Comments will be available in the AD
docket shortly after receipt.
FOR FURTHER INFORMATION CONTACT:
Alan Levanduski, Aerospace Engineer,
Wichita ACO Branch, FAA, 1801
Airport Road, Room 100, Wichita,
Kansas 67209; phone: (316) 946–4161;
fax: (316) 946–4107; email:
alan.levanduski@faa.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Within the last year, the FAA has
received an estimated 17 reports of the
right aileron flight control cable end
fittings failing on Textron Models E33A,
S35, V35, and A36 airplanes. There are
two different cable assemblies installed
on the right aileron flight control
system. The forward aileron cable
assembly connects the control wheel to
the turnbuckle, and the aft aileron cable
assembly connects the aileron surface to
the turnbuckle. These failures have
occurred at the swaged cable end
fittings that thread into the turnbuckle.
The location of the right aileron cable
end fittings, just forward of the aft carry
through spar and underneath a heating
duct, creates an environment where
corrosion may be accelerated. Also, the
presence of the turnbuckle safety wire,
combined with the location beneath the
heating duct, makes corrosion and
cracking difficult to detect. Some of the
reports of failed cable end fittings
revealed that the aileron cables had
been held together only by the safety
wire, while other reports were of
complete aileron cable separation.
Because of airplane design similarities,
this unsafe condition could also occur
on Models E33, E33C, F33, F33A, F33C,
G33, 35–C33, 35–C33A, K35, M35, N35,
P35, V35A, V35B, and 36.
This condition, if not addressed,
could result in failure of the right
aileron flight control cable assembly,
un-commanded right roll of the
airplane, and loss of roll control in the
left direction, which may lead to loss of
control of the airplane. The FAA is
issuing this AD to address the unsafe
condition on these products.
Examining the AD Docket
FAA’s Determination
You may examine the AD docket on
the internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2019–
0853; or in person at Docket Operations
between 9 a.m. and 5 p.m., Monday
The FAA is issuing this AD because
it evaluated all the relevant information
and determined the unsafe condition
described previously is likely to exist or
develop in other products of the same
type design.
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]]>Agencies
[Federal Register Volume 84, Number 216 (Thursday, November 7, 2019)]
[Rules and Regulations]
[Pages 59924-59926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24272]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R-1684; RIN 7100-AF 64]
Regulation D: Reserve Requirements of Depository Institutions
AGENCY: Board of Governors of the Federal Reserve System.
[[Page 59925]]
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 1.55 percent and IOER is 1.55
percent, a 0.25 percentage point decrease 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 November 7, 2019.
Applicability date: The IORR and IOER rate changes are applicable
beginning October 31, 2019.
FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Special
Counsel (202-452-3565), or Justyna Bolter, Senior Attorney (202-452-
2686), Legal Division, or Francis Martinez, Senior Financial
Institution & Policy Analyst (202-245-4217), or Laura Lipscomb,
Assistant Director (202-912-7964), 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 1.80 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 1.55 percent and IOER is 1.55 percent. This 0.25
percentage point decrease in each rate was associated with a decrease
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 1\1/2\ to 1\3/4\ percent,
announced by the FOMC on October 30, 2019, with an effective date of
October 31, 2019. The FOMC's press release on the same day as the
announcement noted that:
Information received since the Federal Open Market Committee met
in September indicates that the labor market remains strong and that
economic activity has been rising at a moderate rate. Job gains have
been solid, on average, in recent months, and the unemployment rate
has remained low. Although household spending has been rising at a
strong pace, business fixed investment and exports remain weak. On a
12-month basis, overall inflation and inflation for items other than
food and energy are running below 2 percent. Market-based measures
of inflation compensation remain low; survey-based measures of
longer-term inflation expectations are little changed.
Consistent with its statutory mandate, the Committee seeks to
foster maximum employment and price stability. In light of the
implications of global developments for the economic outlook as well
as muted inflation pressures, the Committee decided to lower the
target range for the federal funds rate to 1\1/2\ to 1\3/4\ percent.
This action supports the Committee's view that sustained expansion
of economic activity, strong labor market conditions, and inflation
near the Committee's symmetric 2 percent objective are the most
likely outcomes, but uncertainties about this outlook remain. The
Committee will continue to monitor the implications of incoming
information for the economic outlook as it assesses the appropriate
path of the target range for the federal funds rate.
A Federal Reserve Implementation note released simultaneously with
the announcement stated:
The Board of Governors of the Federal Reserve System voted
unanimously to lower the interest rate paid on required and excess
reserve balances to 1.55 percent, effective October 31, 2019.
As a result, the Board is amending Sec. 204.10(b)(5) of Regulation
D to change IORR to 1.55 percent and IOER to 1.55 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\
---------------------------------------------------------------------------
\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 changes 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.
[[Page 59926]]
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:
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:
Table 1 to Paragraph (b)(5)
------------------------------------------------------------------------
Rate
(percent)
------------------------------------------------------------------------
IORR........................................................ 1.55
IOER........................................................ 1.55
------------------------------------------------------------------------
* * * * *
By order of the Board of Governors of the Federal Reserve
System, November 1, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-24272 Filed 11-6-19; 8:45 am]
BILLING CODE 6210-01-P
