Regulation A: Extensions of Credit by Federal Reserve Banks
What happened
The Board of Governors of the Federal Reserve System approved final amendments to Regulation A, signed by Donald Trump. This action increased the primary credit rate by 0.25 percentage points, from 3.75 percent to 4.00 percent, effective September 17, 2026. Consequently, the secondary credit rate automatically increased by 0.25 percentage points, from 4.25 percent to 4.50 percent.
Why it matters
This change means depository institutions will pay higher interest rates when borrowing funds from Federal Reserve Banks through primary and secondary credit programs. These programs serve as a backup source of short-term funding, typically overnight, for these institutions.
Who it affects
- ›Depository institutions
- ›Federal Reserve Banks
- ›Banks receiving short-term credit
The receipts are official. The summary is ours.
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