November 2025Transmittal 537
Effective: 11/1/2025
Monetary Policy and Reserve Requirements
Regulation A
The Board has adopted final amendments
to its Regulation A to reflect the Board’s approval of a decrease
in the rate for primary credit at each Federal Reserve Bank.
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The secondary credit
rate at each Reserve Bank automatically decreased by formula as a
result of the Board’s primary credit rate action. The final
rule is effective October 2, 2025 (Regulation A, Docket R-1872), the same day it was published
in the Federal Register. The rate changes
for primary and secondary credit were applicable on September 18,
2025.Regulation D
The Board is amending
Regulation D (Reserve Requirements of Depository Institutions) to
revise the rate of interest paid on balances (IORB) maintained at
Federal Reserve Banks by or on behalf of eligible institutions.
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The final amendments
specify that IORB is 4.15 percent, a 0.25 percentage point decrease
from its prior level. The amendment is intended to enhance the role
of IORB in maintaining the federal funds rate in the target range
established by the Federal Open Market Committee. The final rule is
effective October 2, 2025 (Regulation D, Docket R-1871), the same day it was published
in the Federal Register. The IORB rate change
was applicable on September 18, 2025.
