7202 Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Rules and Regulations 

1The 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. 

FEDERAL RESERVE SYSTEM 

12 CFR Part 201 

[Regulation A] 

Extensions of Credit by Federal 

Reserve Banks 

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 A to reflect the Board’s 

approval of a decrease in the primary 

credit rate at each Federal Reserve Bank. 

The secondary credit rate at each 

Reserve Bank automatically decreased 

by formula as a result of the Board’s 

primary credit rate action. 

DATES: The amendments to part 201 

(Regulation A) are effective February 7, 

2008. The rate changes for primary and 

secondary credit were effective on the 

dates specified in 12 CFR 201.51, as 

amended. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer J. Johnson, Secretary of the 

Board (202/452–3259); for users of 

Telecommunication Devices for the Deaf 

(TDD) only, contact 202/263–4869. 

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. 

The Board approved requests by the 

Reserve Banks to decrease by 50 basis 

points the primary credit rate in effect 

at each of the twelve Federal Reserve 

Banks, thereby decreasing from 4.00 

percent to 3.50 percent the rate that 

each Reserve Bank charges for 

extensions of primary credit. As a result 

of the Board’s action on the primary 

credit rate, the rate that each Reserve 

Bank charges for extensions of 

secondary credit automatically 

decreased from 4.50 percent to 4.00 

percent under the secondary credit rate 

formula. The final amendments to 

Regulation A reflect these rate changes. 

The 50-basis-point decrease in the 

primary credit rate was associated with 

a similar decrease in the target for the 

federal funds rate (from 3.50 percent to 

3.00 percent) approved by the Federal 

Open Market Committee (Committee) 

and announced at the same time. A 

press release announcing these actions 

indicated that: 

Financial markets remain under 

considerable stress, and credit has tightened 

further for some businesses and households. 

Moreover, recent information indicates a 

deepening of the housing contraction as well 

as some softening in labor markets. 

The Committee expects inflation to 

moderate in coming quarters, but it will be 

necessary to continue to monitor inflation 

developments carefully. 

Today’s policy action, combined with 

those taken earlier, should help to promote 

moderate growth over time and to mitigate 

the risks to economic activity. However, 

downside risks to growth remain. The 

Committee will continue to assess the effects 

of financial and other developments on 

economic prospects and will act in a timely 

manner as needed to address those risks. 

Regulatory Flexibility Act Certification 

Pursuant to the Regulatory Flexibility 

Act (5 U.S.C. 605(b)), the Board certifies 

that the new primary and secondary 

credit rates will not have a significantly 

adverse economic impact on a 

substantial number of small entities 

because the final rule does not impose 

any additional requirements on entities 

affected by the regulation. 

Administrative Procedure Act 

The Board did not follow the 

provisions of 5 U.S.C. 553(b) relating to 

notice and public participation in 

connection with the adoption of these 

amendments because the Board for good 

cause determined that delaying 

implementation of the new primary and 

secondary credit rates in order to allow 

notice and public comment would be 

unnecessary and contrary to the public 

interest in fostering price stability and 

sustainable economic growth. For these 

same reasons, the Board also has not 

provided 30 days prior notice of the 

effective date of the rule under section 

553(d). 

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 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.1

(a) Primary credit. The interest rates 

for primary credit provided to 

depository institutions under § 201.4(a) 

are: 

Federal Reserve 

Bank Rate Effective 

Boston .................. 3.50 Jan. 30, 2008. 

New York ............. 3.50 Jan. 30, 2008. 

Philadelphia ......... 3.50 Jan. 30, 2008. 

Cleveland ............. 3.50 Jan. 30, 2008. 

Richmond ............. 3.50 Jan. 31, 2008. 

Atlanta .................. 3.50 Jan. 30, 2008. 

Chicago ................ 3.50 Jan. 30, 2008. 

St. Louis ............... 3.50 Jan. 31, 2008. 

Minneapolis .......... 3.50 Jan. 31, 2008. 

Kansas City ......... 3.50 Jan. 30, 2008. 

Dallas ................... 3.50 Jan. 31, 2008. 

San Francisco ...... 3.50 Jan. 30, 2008. 

(b) Secondary credit. The interest 

rates for secondary credit provided to 

depository institutions under 201.4(b) 

are: 

Federal Reserve 

Bank Rate Effective 

Boston .................. 4.00 Jan. 30, 2008. 

New York ............. 4.00 Jan. 30, 2008. 

Philadelphia ......... 4.00 Jan. 30, 2008. 

Cleveland ............. 4.00 Jan. 30, 2008. 

Richmond ............. 4.00 Jan. 31, 2008. 

Atlanta .................. 4.00 Jan. 30, 2008. 

Chicago ................ 4.00 Jan. 30, 2008. 

St. Louis ............... 4.00 Jan. 31, 2008. 

Minneapolis .......... 4.00 Jan. 31, 2008. 

Kansas City ......... 4.00 Jan. 30, 2008. 

Dallas ................... 4.00 Jan. 31, 2008. 

San Francisco ...... 4.00 Jan. 30, 2008. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, February 4, 2008. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. E8–2209 Filed 2–6–08; 8:45 am] 

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