Release Date: September 8, 2010
For immediate release
The Federal Reserve Board on Wednesday announced that it has authorized ongoing small-value offerings of term deposits under the Term Deposit Facility (TDF).
These small-value offerings are designed to ensure the operational readiness of the TDF and to provide eligible institutions with an opportunity to gain familiarity with term deposit procedures. The development of the TDF and the ongoing small-value TDF offerings are a matter of prudent planning and have no implications for the near-term conduct of monetary policy.
The terms and frequency for these auctions may evolve over time, but the Board currently anticipates that TDF auctions will be held about every other month. Following this approach, two auctions will be conducted over the remainder of this year on October 4 and November 29; the corresponding settlements will occur on October 7 and December 2, respectively. Each of these auctions will offer $5 billion of 28-day deposits; the modest increase in the offering amount from the $2 billion offering amount at auctions held in June and July is intended to encourage broad participation by depository institutions at the upcoming auctions. The schedule, amounts, and other terms for small-value auctions to be conducted in 2011 will be announced at later dates.