Term Deposit Facility
Term deposits will facilitate the implementation of monetary policy by providing a new tool by which the Federal Reserve can manage the aggregate quantity of reserve balances held by depository institutions. Funds placed in term deposits are removed from the accounts of participating institutions for the life of the term deposit and thereby drain reserve balances from the banking system. Reserve Banks will offer term deposits through the Term Deposit Facility (TDF), and all institutions that are eligible to receive earnings on their balances at Reserve Banks may participate in the term deposit program.
Related Press Releases
- Federal Reserve announces small-value fixed-rate term deposit operations (April 26, 2013)
- Federal Reserve Board approves amendments to Regulation D authorizing Reserve Banks to offer term deposits (April 30, 2010)
- Board authorizes ongoing small-value offerings of term deposits under the Term Deposit Facility (September 8, 2010)
- Federal Reserve announces schedule for small-value auctions of term deposits through the Term Deposit Facility (May 28, 2010)
- Board authorizes small-value offerings of term deposits under the Term Deposit Facility (May 10, 2010)