[Federal Register Volume 64, Number 228 (Monday, November 29, 1999)]
[Rules and Regulations]
[Pages 66553-66554]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30852]
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FEDERAL RESERVE SYSTEM
12 CFR Part 201
[Regulation A]
Extensions of Credit by Federal Reserve Banks; Change in Discount
Rate
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
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SUMMARY: The Board of Governors has amended its Regulation A on
Extensions of Credit by Federal Reserve Banks to reflect its approval
of an increase in the basic discount rate at each Federal Reserve Bank.
The Board acted on requests submitted by the Boards of Directors of the
twelve Federal Reserve Banks.
DATES: The amendments to part 201 (Regulation A) were effective
November 16, 1999. The rate changes for adjustment credit were
effective on the dates specified in 12 CFR 201.51.
FOR FURTHER INFORMATION CONTACT: Jennifer J. Johnson, Secretary of the
Board, at (202) 452-3259; for users of Telecommunications Device for
the Deaf (TDD), contact Diane Jenkins, at (202) 452-3544, Board of
Governors of the Federal Reserve System, 20th and C Streets NW,
Washington, DC 20551.
SUPPLEMENTARY INFORMATION: Pursuant to the authority of sections 10(b),
13, 14, 19, et al., of the Federal Reserve Act, the Board has amended
its Regulation A (12 CFR part 201) to incorporate changes in discount
rates on Federal Reserve Bank extensions of credit. The discount rates
are the interest rates charged to depository institutions when they
borrow from their district Reserve Banks.
The ``basic discount rate'' is a fixed rate charged by Reserve
Banks for adjustment credit and, at the Reserve Banks' discretion, for
extended credit. In increasing the basic discount rate
[[Page 66554]]
from 4.75 percent to 5 percent, the Board acted on requests submitted
by the Boards of Directors of the twelve Federal Reserve Banks. The new
rates were effective on the dates specified below. The 25-basis-point
increase in the discount rate was associated with a similar increase in
the federal funds rate announced at the same time.
Although cost pressures appear generally contained, risks to
sustainable growth persist. Despite tentative evidence of a slowing in
certain interest-sensitive sectors of the economy and of accelerating
productivity, the expansion of activity continues in excess of the
economy's growth potential. As a consequence, the pool of available
workers willing to take jobs has been drawn down further in recent
months, a trend that must eventually be contained if inflationary
imbalances are to remain in check and economic expansion continue.
Regulatory Flexibility Act Certification
Pursuant to section 605(b) of the Regulatory Flexibility Act (5
U.S.C. 605(b)), the Board certifies that the change in the basic
discount rate will not have a significant adverse economic impact on a
substantial number of small entities. The rule does not impose any
additional requirements on entities affected by the regulation.
Administrative Procedure Act
The provisions of 5 U.S.C. 553(b) relating to notice and public
participation were not followed in connection with the adoption of the
amendment because the Board for good cause finds that delaying the
change in the basic discount rate in order to allow notice and public
comment on the change is impracticable, unnecessary, and contrary to
the public interest in fostering sustainable economic growth.
The provisions of 5 U.S.C. 553(d) that prescribe 30 days prior
notice of the effective date of a rule have not been followed because
section 553(d) provides that such prior notice is not necessary
whenever there is good cause for finding that such notice is contrary
to the public interest. As previously stated, the Board determined that
delaying the changes in the basic discount rate is contrary to the
public interest.
List of Subjects in 12 CFR Part 201
Banks, banking, Credit, Federal Reserve System.
For the reasons set out in the preamble, 12 CFR part 201 is amended
as set forth below:
PART 201--EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION
A)
1. The authority citation for 12 CFR part 201 continues to read as
follows:
Authority: 12 U.S.C. 343 et seq., 347a, 347b, 347c, 347d, 348 et
seq., 357, 374, 374a and 461.
2. Section 201.51 is revised to read as follows:
Sec. 201.51 Adjustment credit for depository institutions.
The rates for adjustment credit provided to depository institutions
under Sec. 201.3(a) are:
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Federal Reserve Bank Rate Effective
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Boston........................... 5.0 Nov. 16, 1999
New York......................... 5.0 Nov. 18, 1999
Philadelphia..................... 5.0 Nov. 18, 1999
Cleveland........................ 5.0 Nov. 16, 1999
Richmond......................... 5.0 Nov. 16, 1999
Atlanta.......................... 5.0 Nov. 17, 1999
Chicago.......................... 5.0 Nov. 18, 1999
St. Louis........................ 5.0 Nov. 18, 1999
Minneapolis...................... 5.0 Nov. 18, 1999
Kansas City...................... 5.0 Nov. 16, 1999
Dallas........................... 5.0 Nov. 17, 1999
San Francisco.................... 5.0 Nov. 16, 1999
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By order of the Board of Governors of the Federal Reserve
System, November 22, 1999.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 99-30852 Filed 11-26-99; 8:45 a.m.]
BILLING CODE 6210-01-P
