Regulatory Alerts2022-10-07 | 2022-21833Regulation D: Reserve Requirements of Depository Institutions
The Board of Governors of the Federal Reserve System issued a final rule amending Regulation D to increase the interest rate paid on reserve balances to 3.15 percent. This 0.75 percentage point adjustment, applicable as of September 22, 2022, supports the Federal Open Market Committee’s monetary policy decision to raise the federal funds rate target range to 3 to 3.25 percent. The Board dispensed with standard notice-and-comment procedures to ensure immediate implementation, citing the urgent necessity of promptly adjusting monetary policy tools to maintain market stability.
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