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`H.3 (502)								June 14, 2007

                                      SPECIAL NOTICE

      Data on reserves and the monetary base have been revised to reflect the results
      of annual reviews of break factors and seasonal factors.  Revisions to seasonal
      factors start in January 1999, and they are the major source of revisions to
      the data.  Revisions to break factors begin in January 2006, and revisions to
      break-adjusted data do not exceed $120 million in any maintenance period.  The
      maximum revision to total reserves, nonborrowed reserves, required reserves,
      and the monetary base (Table 1) in any maintenance period was $1.3 billion;
      most revisions were less than $600 million.
 
      Break factors remove discontinuities (or "breaks") associated with regulatory
      changes in reserve requirements, such as the annual indexations of the
      low-reserve tranche and the reserve requirement exemption levels.1  Seasonal
      factors for required reserves and the surplus vault cash component of the 
      monetary base have been reestimated with the revised break-adjusted data.  

      A more detailed description of the methods for constructing break factors and
      seasonal factors is available under "Annual Review of Break and Seasonal 
      Factors" on the Federal Reserve's web site
      (http://www.federalreserve.gov/releases/h3/hist/).  Historical data, updated
      each week, are available there as well.  For paid electronic access to current
      and historical data, call STAT-USA at 1-800-782-8872 or 202-482-1986.  

      1.  The Monetary Control Act of 1980 established a reserve ratio of 3 percent
      against the first $25 million in net transaction deposits (low-reserve tranche)
      at each depository institution.  Since 1982, the low-reserve tranche has been
      indexed each January by 80 percent of the previous year's (June 30 to June 30)
      growth rate of net transaction deposits at all depository institutions.  For
      all reserve maintenance periods ending in 2007, the low-reserve tranche is
      $45.8 million.
	  Under the Garn-St Germain Depository Institutions Act of 1982, the first
      $2 million of reservable liabilities of each depository institution was
      exempted from reserve requirements.  Since 1983, this exemption amount has been
      indexed each year by 80 percent of the rate of increase of the reservable
      liabilities at all depository institutions over the preceding year (June 30 to
      June 30).  For all reserve maintenance periods ending in 2007, the reserve
      exemption level is $8.5 million.
	
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 FEDERAL RESERVE STATISTICAL RELEASE
  
 H.3 (502)
 Table 1	                                                                                            For Release at 4:30 p.m. Eastern Time
                                                                                                                          June 14, 2007
 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
 Adjusted for changes in reserve requirements(1)                                                                                              
 Seasonally adjusted unless noted otherwise
 Millions of dollars
 --------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         
                                  Reserves of depository institutions                          Borrowings of depository institutions from
                                                                                                        the Federal Reserve, NSA
                          --------------------------------------------------               --------------------------------------------------
                                                                                                                                          
      Date                   total(2)     non-         required       excess     Monetary        total      primary    secondary     seasonal
                                       borrowed(3)                    NSA(4)      base(5)  
 --------------------------------------------------------------------------------------------------------------------------------------------
 Month(6)
  2006-May                      44653        44478        42849         1804       804413          175           24            0          151
       June                     45173        44920        43388         1784       804378          253           16            0          237
                                                                                                                                             
       July                     44135        43784        42589         1546       804007          350           39            0          312
       Aug.                     42838        42469        41304         1534       804600          369           26            0          343
       Sep.                     43113        42710        41352         1761       805350          403           66            0          338
                                                                                                                                             
       Oct.                     42891        42663        41218         1674       806900          229           24            0          205
       Nov.                     43185        43025        41479         1706       810085          160           48            0          112
       Dec.                     43315        43124        41498         1817       812579          191          111            0           80
                                                                                                                                             
  2007-Jan.                     42199        41988        40658         1540       813411          211          187            0           24
       Feb.                     42435        42405        40929         1506       812172           30            8            0           22
       Mar.                     42340        42286        40696         1644       813799           54           21            5           28
                                                                                                                                             
       Apr.                     42722        42643        41189         1533       816098           79           32            0           48
       May  p                   43160        43057        41716         1444       817933          103           14            0           90
 2 weeks ending(7)
  2007-Apr. 11                  42760        42680        40949         1810       815014           80           44            0           36
            25                  42072        41990        40739         1333       816039           83           32            0           52
                                                                                                                                             
       May   9                  44462        44391        42977         1485       818651           71            6            0           65
            23                  41918        41805        40623         1296       817043          113           22            0           92
                                                                                                                                             
       June  6p                 43868        43745        42210         1659       818683          124           10            0          114
---------------------------------------------------------------------------------------------------------------------------------------------  
 1. Reserves and monetary base figures incorporate adjustments for discontinuities, or "breaks", associated with regulatory changes in reserve 
    requirements. (For more information, see Table 3).
 2. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break-adjusted required reserves plus unadjusted excess 
    reserves. (Also, see footnote 2 on Table 2 and footnote 2 on Table 3.)
 3. Seasonally  adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, break-adjusted total reserves less unadjusted total
    borrowings of depository institutions from the Federal Reserve.
 4. Excess reserves NSA equals unadjusted total reserves (Table 2, column 1) less adjusted required reserves (Table 2, column 3).
 5. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally adjusted, break-adjusted total reserves plus (2)
    the seasonally adjusted currency component of the money stock plus (3), for all quarterly reporters on the "Report of Transaction 
    Accounts, Other Deposits and Vault Cash" and for all those weekly reporters whose vault cash exceeds their required reserves, the 
    seasonally adjusted, break-adjusted difference between current vault cash and the amount applied to satisfy current reserve requirements. 
    (Also see footnote 3 on Table 2 and footnote 4 on Table 3.)
 6. Prorated averages of biweekly averages.
 7. Averages of daily figures.
 p  preliminary
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 H.3 (502)
 Table 2
 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
 Not adjusted for changes in reserve requirements(1) 
 Not seasonally adjusted
 Millions of dollars
 -------------------------------------------------------------------------------------------------------------------------------------------
  
                    Reserves of depository institutions                                          Vault cash(5)
                  --------------------------------------                            --------------------------------------
                                                                            Reserve                  used to                 Net carryover
      Date              total(2) nonborrowed     required     Monetary     balances       total      satisfy      surplus(7)  of reserve
                                                               base(3)     with F.R.                required                  balances(8)
                                                                            Banks(4)                reserves(6)
 -------------------------------------------------------------------------------------------------------------------------------------------
 Month(9)                                                                                
  2006-May                 45440        45265        43636       811900        10650        48294        34789        13504
       June                45048        44795        43264       812213         9911        48982        35137        13845
                                                                                                                           
       July                44864        44513        43318       811744         9611        49617        35253        14365
       Aug.                42683        42314        41149       809737         8794        50243        33888        16355
       Sep.                42612        42208        40851       809990         9111        49402        33501        15901
                                                                                                                           
       Oct.                41755        41526        40081       809234         8254        50093        33502        16591
       Nov.                42234        42074        40528       815381         8455        48961        33779        15181
       Dec.                43282        43091        41465       825289         8479        50901        34803        16098
                                                                                                                           
  2007-Jan.                44658        44447        43118       823718         8801        52165        35857        16309
       Feb.                42665        42635        41159       819695         7722        53737        34943        18795
       Mar.                40772        40718        39128       820795         7519        49731        33253        16478
                                                                                                                           
       Apr.                42550        42470        41016       822638         8561        48805        33989        14816
       May  p              44028        43924        42583       825093         9205        48651        34823        13828
 2 weeks ending(10)
  2007-Apr. 11             39906        39826        38095       821613         7781        49002        32125        16877          163
            25             43948        43866        42615       822897         8689        48912        35259        13653          157
                                                                                                                                        
       May   9             44451        44381        42966       824168         9920        48075        34531        13544           62
            23             43722        43609        42426       824221         8664        49392        35058        14334           -4
                                                                                                                                        
       June  6p            44087        43964        42428       827661         9346        48003        34741        13262         -117
--------------------------------------------------------------------------------------------------------------------------------------------   
 1. Reflects actual required reserves, with no adjustments to eliminate the effects of discontinuities, or "breaks", associated with 
    regulatory changes in reserve requirements.
 2. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve requirements.
 3. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total reserves plus (2) required clearing balances
    and adjustments to compensate for float at Federal Reserve Banks plus (3) the currency component of the money stock plus (4), for all 
    quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters whose 
    vault cash exceeds their required reserves, the difference between current vault cash and the amount applied to satisfy current reserve 
    requirements. Currency and vault cash figures are measured over computation periods ending on Mondays.
 4. Excludes required clearing balances and adjustments to compensate for float and includes other off-balance sheet "as-of" adjustments.
 5. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by those banks and thrifts that are not exempt
    from reserve requirements. Dates refer to the maintenance periods in which the vault cash can be used to satisfy reserve requirements.
 6. All vault cash held during the lagged computation period by "bound" institutions (i.e., those whose required reserves exceed their vault 
    cash) plus the amount of vault cash applied during the maintenance period by "nonbound" institutions (i.e., those whose vault cash 
    exceeds their required reserves) to satisfy current reserve requirements.
 7. Total vault cash eligible to satisfy reserve requirements, held by depository institutions not exempt from reserve requirements, minus the
    amount used to satisfy reserve requirements.
 8. Consists of carryover only at depository institutions maintaining reserves on the basis of two-week maintenance periods. Reflects excess (+) 
    or deficit (-) reserves eligible to be carried forward into the two-week reserve maintenance period ending on the date shown.
 9. Prorated averages of biweekly averages.
10. Averages of daily figures.
 p  preliminary
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 H.3 (502)
 Table 3
 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
 Adjusted for changes in reserve requirements(1)
 Not seasonally adjusted
 Millions of dollars
 ---------------------------------------------------------------------------------
  
                      Reserves of depository institutions
                    ---------------------------------------
      Date              total(2) nonborrowed    required(3)  Monetary base(4)
 ----------------------------------------------------------------------------------
 Month(5)
  2006-May                 45518        45344        43715         804750
       June                45143        44890        43359         804938
                                                                         
       July                44974        44623        43428         804674
       Aug.                42799        42430        41265         802726
       Sep.                42737        42334        40977         803169
                                                                         
       Oct.                41882        41653        40208         802355
       Nov.                42370        42211        40665         808597
       Dec.                43362        43171        41545         818400
                                                                         
  2007-Jan.                44646        44435        43106         816823
       Feb.                42691        42662        41185         812911
       Mar.                40813        40759        39169         813942
                                                                         
       Apr.                42605        42526        41072         815963
       May  p              44097        43993        42652         818621
 2 weeks ending(6)
  2007-Apr. 11             39955        39876        38145         814652
            25             44006        43923        42673         816373
                                                                         
       May   9             44514        44443        43029         817694
            23             43791        43678        42495         817788
                                                                         
       June  6p            44164        44040        42505         821121
  
 1. Figures reflect adjustments for discontinuities, or "breaks", associated with 
    regulatory changes in reserve requirements.
 2. Break-adjusted total reserves equal break-adjusted required reserves (Table 3, 
    column 3) plus excess reserves NSA (Table 1, column 5).
 3. To adjust required reserves for discontinuities due to regulatory changes in 
    in reserve requirements, a multiplicative procedure is used to estimate what 
    required reserves would have been in past periods had current reserve 
    requirements been in effect. Break-adjusted required reserves are equal to 
    break-adjusted required reserves against transactions deposits.
 4. The break-adjusted monetary base equals (1) break-adjusted total reserves plus 
    (2) the (unadjusted) currency component of the money stock plus (3), for all 
    quarterly reporters on the "Report of Transaction Accounts, Other Deposits and 
    Vault Cash" and for all those weekly reporters whose vault cash exceeds their 
    required reserves, the break-adjusted difference between current vault cash and 
    the amount applied to satisfy current reserve requirements.
 5. Prorated averages of biweekly averages.
 6. Averages of daily figures.
 p  preliminary		

 Note: Current and historical H.3 data are available each week on the Federal Reserve 
       Board's web site (http://www.federalreserve.gov/). Monthly data are available 
       back to January 1959, and weekly data are available back to January 1975 for most 
       series. For information about individual copies or subscriptions, contact 
       Publications Services at the Federal Reserve Board (phone 202-452-3245, 
       fax 202-728-5886). For paid electronic access to current and historical data, 
       call STAT-USA at 1-800-782-8872 or 202-482-1986.`

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