29650 Federal Register / Vol. 87, No. 94 / Monday, May 16, 2022 / Rules and Regulations 

6 44 U.S.C. 3506; see 5 CFR part 1320 Appendix 

A.1. 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. 

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 FR16525 (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) & (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). 

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 Chapter II 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), 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 1.00 

percent. 

(b) Secondary credit. The interest rate 

at each Federal Reserve Bank for 

secondary credit provided to depository 

institutions under § 201.4(b) is 1.50 

percent. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2022–10386 Filed 5–13–22; 8:45 am] 

BILLING CODE 6210–02–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 204 

[Docket No. R–1771] 

RIN 7100–AG31 

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 

0.90 percent, a 0.50 percentage point 

increase 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: The amendments to 

part 204 (Regulation D) are effective 

May 16, 2022. 

Applicability date: The IORB rate 

change was applicable on May 5, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Sophia H. Allison, Senior Special 

Counsel (202–452–3565), Legal 

Division, or Nicole Trachman, Financial 

Institution & Policy Analyst (202–973– 

5055), or Laura Lipscomb, Deputy 

Associate Director (202–834–2979), 

Division of Monetary Affairs; for users 

of telephone systems via text telephone 

(TTY) or any TTY-based 

Telecommunications Relay Services 

(TRS), 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 0.40 percent.6

II. Amendment to IORB 

The Board is amending § 204.10(b)(1) 

of Regulation D to establish IORB at 0.90 

percent. The amendment represents a 

0.50 percentage point increase in IORB. 

This decision was announced on May 4, 

2022, with an effective date of May 5, 

2022, in the Federal Reserve 

Implementation Note that accompanied 

the FOMC’s statement on May 4, 2022. 

The FOMC statement stated that the 

Committee decided to raise the target 

range for the federal funds rate to 3⁄4 to 

1 percent. 

A Federal Reserve Implementation 

note stated, ‘‘The Board of Governors of 

the Federal Reserve System voted 

unanimously to raise the interest rate 

paid on reserve balances to 0.9 percent, 

effective May 5, 2022.’’ 

As a result, the Board is amending 

§ 204.10(b)(1) of Regulation D to 

establish IORB at 0.90 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


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Federal Register / Vol. 87, No. 94 / Monday, May 16, 2022 / Rules and Regulations 29651 

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

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

A.1. 

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 

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 0.90 percent. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2022–10387 Filed 5–13–22; 8:45 am] 

BILLING CODE 6210–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2021–1183; Project 

Identifier AD–2021–01193–E; Amendment 

39–22029; AD 2022–09–09] 

RIN 2120–AA64 

Airworthiness Directives; CFM 

International, S.A. Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for all CFM 

International, S.A. (CFM) LEAP–1A23, 

LEAP–1A24, LEAP–1A24E1, LEAP– 

1A26, LEAP–1A26CJ, LEAP–1A26E1, 

LEAP–1A29, LEAP–1A29CJ, LEAP– 

1A30, LEAP–1A32, LEAP–1A33, LEAP– 

1A33B2, and LEAP–1A35A model 

turbofan engines. This AD was 

prompted by the detection of meltrelated freckles in the billet, which may 

reduce the life of certain compressor 

rotor stages 6–10 spools, high pressure 

turbine (HPT) rotor interstage seals, HPT 

rotor stage 2 disks, low pressure turbine 

(LPT) stage 1 disks, LPT stage 2 disks, 

LPT stage 3 disks, and LPT stage 4 

disks. This AD requires revising the 

airworthiness limitations section (ALS) 

of the applicable CFM LEAP–1A Engine 

Shop Manual (ESM) and the operator’s 

existing approved continuous 

airworthiness maintenance program 

(CAMP) to incorporate reduced life 

limits for these parts. This AD also 

requires the removal of certain LPT 

stage 4 disks identified by serial number 

(S/N) prior to their new life limits. The 

FAA is issuing this AD to address the 

unsafe condition on these products. 

DATES: This AD is effective June 21, 

2022. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of June 21, 2022. 

ADDRESSES: For service information 

identified in this final rule, contact CFM 

International, S.A., Aviation Operations 

Center, 1 Neumann Way, M/D Room 

285, Cincinnati, OH 45125; phone: (877) 

432–3272; email: fleetsupport@ge.com. 

You may view this service information 

at the FAA, Airworthiness Products 

Section, Operational Safety Branch, 

1200 District Avenue, Burlington, MA 

01803. For information on the 

availability of this material at the FAA, 

call (817) 222–5110. It is also available 

at https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2021–1183. 

Examining the AD Docket 

You may examine the AD docket at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2021–1183; 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, 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. 

FOR FURTHER INFORMATION CONTACT: 

Mehdi Lamnyi, Aviation Safety 

Engineer, ECO Branch, FAA, 1200 

District Avenue, Burlington, MA 01803; 

phone: (781) 238–7743; fax: (781) 238– 

7199; email: Mehdi.Lamnyi@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to all CFM LEAP–1A23, LEAP– 

1A24, LEAP–1A24E1, LEAP–1A26, 

LEAP–1A26CJ, LEAP–1A26E1, LEAP– 

1A29, LEAP–1A29CJ, LEAP–1A30, 

LEAP–1A32, LEAP–1A33, LEAP– 

1A33B2, and LEAP–1A35A model 

turbofan engines. The NPRM published 


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