78222 Federal Register / Vol. 89, No. 186 / Wednesday, September 25, 2024 / Rules and Regulations 

1 12 U.S.C. 461(b). In March 2020, the Board set 

all reserve requirement ratios to zero percent. See 

Interim Final Rule, 85 FR 16525 (Mar. 24, 2020); 

Final Rule, 86 FR 8853 (Feb. 10, 2021). 

2 12 CFR 204.5(a)(1). 

3 12 U.S.C. 461(b)(1)(A) and (b)(12)(A). 

4See 12 U.S.C. 461(b)(1)(A) & (b)(12)(C); see also 

12 CFR 204.2(y). 

5See 12 U.S.C. 461(b)(12)(B). 

6See 12 CFR 204.10(b)(1). 

7 5 U.S.C. 551 et seq. 

8 5 U.S.C. 553(b)(3)(A). 

9 5 U.S.C. 553(d). 

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 5.00 

percent. 

(b) Secondary credit. The interest rate 

at each Federal Reserve Bank for 

secondary credit provided to depository 

institutions under § 201.4(b) is 5.50 

percent. 

* * * * * 3The 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. 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2024–21908 Filed 9–24–24; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 204 

[Docket No. R–1840] 

RIN 7100–AG 81 

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’’) has 

adopted final amendments to its 

Regulation D to revise the rate of 

interest paid on balances (‘‘IORB’’) 

maintained at Federal Reserve Banks by 

or on behalf of eligible institutions. The 

final amendments specify that IORB is 

4.9 percent, a 0.5 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 

(‘‘FOMC’’ or ‘‘Committee’’). 

DATES: 

Effective date: This rule (amendments 

to part 204 (Regulation D)) is effective 

September 25, 2024. 

Applicability date: The IORB rate 

change was applicable on September 19, 

2024. 

FOR FURTHER INFORMATION CONTACT: M. 

Benjamin Snodgrass, Senior Counsel 

(202–263–4877), Legal Division, or 

Heather Ford, Group Manager (202– 

452–3674); for users of telephone 

systems via text telephone (TTY) or any 

TTY-based Telecommunications Relay 

Services, please call 711 from any 

telephone, anywhere in the United 

States; 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 (‘‘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 

established IORB at 5.4 percent.6

II. Amendment to IORB 

The Board is amending § 204.10(b)(1) 

of Regulation D to establish IORB at 4.9 

percent. The amendment represents a 

0.5 percentage point decrease in IORB. 

This decision was announced on 

September 18, 2024, with an effective 

date of September 19, 2024, in the 

Federal Reserve Implementation Note 

that accompanied the FOMC’s statement 

on September 18, 2024. The FOMC 

statement stated that the Committee 

decided to lower the target range for the 

federal funds rate to 43⁄4 to 5 percent. 

The Federal Reserve Implementation 

Note stated: 

The Board of Governors of the Federal 

Reserve System voted unanimously to lower 

the interest rate paid on reserve balances to 

4.9 percent, effective September 19, 2024. 

As a result, the Board is amending 

§ 204.10(b)(1) of Regulation D to 

establish IORB at 4.9 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 change for IORB that is 

reflected in the final amendment to 

Regulation D was 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 


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Federal Register / Vol. 89, No. 186 / Wednesday, September 25, 2024 / Rules and Regulations 78223 

10 5 U.S.C. 603, 604. 

11 44 U.S.C. 3506; see 5 CFR part 1320 Appendix 

A.1. 

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 

this final amendment 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. 

Authority and Issuance 

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)(1) to read as 

follows: 

§ 204.10 Payment of interest on balances. 

* * * * * 

(b) * * * 

(1) For balances maintained in an 

eligible institution’s master account, 

interest is the amount equal to the 

interest on reserve balances rate (‘‘IORB 

rate’’) on a day multiplied by the total 

balances maintained on that day. The 

IORB rate is 4.9 percent. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2024–21909 Filed 9–24–24; 8:45 am] 

BILLING CODE 6210–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2024–1007; Project 

Identifier MCAI–2023–01249–T; Amendment 

39–22823; AD 2024–16–17] 

RIN 2120–AA64 

Airworthiness Directives; Airbus SAS 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is superseding 

Airworthiness Directive (AD) 2022–13– 

11, which applied to all Airbus SAS 

Model A350–941 and –1041 airplanes. 

AD 2022–13–11 required revising the 

existing airplane flight manual (AFM) 

for airplanes equipped with affected 

flight control units (FCUs) and replacing 

any affected FCU with a serviceable 

FCU. This AD was prompted by reports 

of inadvertent auto flight system (AFS) 

altitude changes on the FCU; an 

investigation revealed that, depending 

on the ring selection, failure of the ALT 

knob on the FCU could change the 

target altitude. This AD continues to 

require certain actions in AD 2022–13– 

11, including replacing any affected 

FCU with a serviceable FCU, expands 

the requirement to revise the existing 

AFM for all airplanes, and prohibits the 

installation of affected parts; as 

specified in a European Union Aviation 

Safety Agency (EASA) AD, which is 

incorporated by reference. The FAA is 

issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective October 30, 

2024. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of October 30, 2024. 

ADDRESSES: 

AD Docket: You may examine the AD 

docket at regulations.gov under Docket 

No. FAA–2024–1007; or in person at 

Docket Operations between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. The AD docket 

contains this final rule, the mandatory 

continuing airworthiness information 

(MCAI), any comments received, and 

other information. The address for 

Docket Operations is U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

Material Incorporated by Reference: 

• For EASA material identified in this 

AD, contact EASA, Konrad-AdenauerUfer 3, 50668 Cologne, Germany; 

telephone +49 221 8999 000; email 

ADs@easa.europa.eu; website 

easa.europa.eu. You may find this 

material on the EASA website at 

ad.easa.europa.eu. 

• You may view this material at the 

FAA, Airworthiness Products Section, 

Operational Safety Branch, 2200 South 

216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

It is also available at regulations.gov 

under Docket No. FAA–2024–1007. 

FOR FURTHER INFORMATION CONTACT: Dat 

Le, Aviation Safety Engineer, FAA, 1600 

Stewart Avenue, Suite 410, Westbury, 

NY 11590; telephone 516–228–7300; 

email 9-avs-nyaco-cos@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to supersede AD 2022–13–11, 

Amendment 39–22097 (87 FR 39741, 

July 5, 2022) (AD 2022–13–11). AD 

2022–13–11 applied to all Airbus SAS 

Model A350–941 and –1041 airplanes. 

AD 2022–13–11 was prompted by a 

report of inadvertent AFS altitude 

changes on the FCU; an investigation 

revealed that, depending on the ring 

selection, failure of the ALT knob on the 

FCU could change the target altitude. 

AD 2022–13–11 required revising the 

existing AFM to include a procedure on 

the use of the AFS control panel ALT 

knob. AD 2022–13–11 also required 

replacing any affected FCU with a 

serviceable FCU, which would 

terminate the AFM revision following 

that replacement. The FAA issued AD 

2022–13–11 to address erroneous target 

altitude during descent, climb, or goaround, which could result in an 

unexpected vertical trajectory deviation 

and loss of correct situational awareness 

that could potentially result in 

uncontrolled impact with the ground. 

The NPRM published in the Federal 

Register on April 23, 2024 (89 FR 

30281). The NPRM was prompted by 

AD 2023–0215, dated December 11, 

2023; corrected December 13, 2023; 

issued by EASA, which is the Technical 

Agent for the Member States of the 

European Union (EASA AD 2023–0215) 

(also referred to as the MCAI). The 


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