Record of Policy Actions of the Board of Governors
Policy actions of the Board of Governors are presented pursuant to section 10 of the Federal Reserve Act. That section provides that the Board shall keep a record of all questions of policy determined by the Board and shall include in its annual report to Congress a full account of such actions. This appendix provides a summary of policy actions in 2022. Policy actions were implemented through (1) rules and regulations, (2) policy statements and other actions, and (3) discount rates for depository institutions. Policy actions were approved by all Board members in office, unless indicated otherwise.1 More information on the actions is available from the relevant Federal Register notices or other documents (see links in footnotes) or on request from the Board's Freedom of Information Office. This appendix also provides information on the Board and the Government Performance and Results Act.
For more information on the Federal Open Market Committee's (FOMC's) policy actions relating to open market operations, see Appendix B, "Minutes of Federal Open Market Committee Meetings."
Rules and Regulations
Regulation J (Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers Through Fedwire)
Effective October 1, 2022. On May 16, 2022, the Board approved a final rule (Docket No. R- 1750) to govern funds transfers through the Federal Reserve Banks' new FedNow Service.2 The final rule includes (1) changes and clarifications to the regulations governing the Fedwire Funds Service (Fedwire) to reflect the fact that the Reserve Banks will be operating a second funds transfer service in addition to Fedwire, and (2) technical corrections to the regulations governing the Reserve Banks' check service.
Voting for this action: Chair Pro Tempore Powell and Governors Brainard, Bowman, and Waller.
Regulation II (Debit Card Interchange Fees and Routing)
Effective July 1, 2023. On October 3, 2022, the Board adopted a final rule (Docket No. R-1748) to (1) specify that the requirement that each debit card transaction must be able to be processed on at least two unaffiliated payment card networks applies to card-not-present transactions, such as online payments; (2) clarify the requirement that debit card issuers ensure that at least two unaffiliated networks have been enabled to process a debit card transaction; and (3) standardize and clarify the use of certain terminology.3
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Cook, Jefferson, and Waller. Voting against this action: Governor Bowman.
Regulation ZZ (Regulation Implementing the Adjustable Interest Rate (LIBOR) Act)
Effective February 27, 2023. On December 14, 2022, the Board approved a final rule (Docket No. R-1775) to implement the Adjustable Interest Rate (LIBOR) Act.4 The final rule establishes benchmark replacements based on the Secured Overnight Financing Rate that will replace LIBOR after June 30, 2023, in certain contracts that reference certain tenors of U.S. dollar (USD) LIBOR but do not have terms that provide for the use of a clearly defined and practicable benchmark replacement once USD LIBOR ceases to be published or ceases to be representative. The final rule also restates the safe harbor protections in the LIBOR Act for selection or use of the benchmark replacement selected by the Board and clarifies who is considered a "determining person" able to select a benchmark replacement.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Cook, Jefferson, and Waller.
Policy Statements and Other Actions
Fedwire Funds Service
On June 21, 2022, the Board approved a notice (Docket No. OP-1613) announcing that the Federal Reserve Banks will adopt the ISO 20022 message format for the Fedwire Funds Service on a single day, March 10, 2025.5 The Board also announced a revised testing strategy, backout strategy, and other details concerning the implementation of the ISO 20022 message format.
Voting for this action: Chair Powell, Vice Chair Brainard, and Governors Bowman, Cook, Jefferson, and Waller.
Framework for the Supervision of Insurance Organizations
Effective November 3, 2022. On September 26, 2022, the Board approved final guidance (Docket No. OP-1765) to adopt a supervisory framework for depository institution holding companies significantly engaged in insurance activities, referred to as "supervised insurance organizations."6 The framework is designed specifically to reflect the differences between banking and insurance, and applies supervisory guidance and resources based explicitly on a supervised insurance organization's complexity and individual risk profile. In addition, the framework establishes a supervisory ratings system for these firms and emphasizes that the Board will rely to the fullest extent possible on the work of other relevant supervisors, in particular, reports and other supervisory information provided by state insurance regulators.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Cook, Jefferson, and Waller.
Guidelines for Evaluating Account and Services Requests
Effective August 19, 2022. On August 14, 2022, the Board approved final guidance (Docket No. OP-1747) on account access guidelines for Federal Reserve Banks to use in evaluating requests for access to Reserve Bank master accounts and financial services.7 The guidelines establish a transparent, risk-based, and consistent set of factors for reviewing such requests as well as include a tiered review framework to provide additional clarity on the level of due diligence and scrutiny that Reserve Banks will apply to different types of institutions that have varying degrees of risk.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Cook, Jefferson, and Waller.
Interagency Questions and Answers Regarding Flood Insurance
On April 20, 2022, the Board approved guidance (Docket No. R-1742, OP-1720), published jointly on May 31, 2022, with the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Farm Credit Administration, and National Credit Union Administration (together with the Board, the agencies), to reorganize, revise, and expand the Interagency Questions and Answers Regarding Flood Insurance.8 The revised guidance will assist lenders in meeting their responsibilities under federal flood insurance law and increase public understanding of the agencies' respective flood insurance regulations. The revised questions and answers cover a broad range of flood insurance topics, including the escrow of flood insurance premiums, the detached-structure exemption to the requirement to purchase flood insurance, force placement procedures, and private flood insurance.
Voting for this action: Chair Pro Tempore Powell and Governors Brainard, Bowman, and Waller.
Payment System Risk Policy
On November 29, 2022, the Board approved amendments to part II of its Policy on Payment System Risk (PSR policy) (Docket No. OP-1749).9 Specifically, the amendments (1) expand the eligibility of depository institutions to request collateralized intraday credit from the Federal Reserve Banks while reducing administrative steps for requesting collateralized intraday credit, (2) clarify the eligibility standards for accessing uncollateralized intraday credit from Reserve Banks and modify the impact of a holding company's or affiliate's supervisory rating on an institution's eligibility to request uncollateralized intraday credit capacity, and (3) support the launch of the FedNow Service (for example, by redefining the term "business day" to reflect the FedNow Service's 24x7x365 operations). In addition, the amendments simplify the Federal Reserve Policy on Overnight Overdrafts and incorporate the Overnight Overdrafts policy as part III of the PSR policy.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Cook, Jefferson, and Waller.
Interest on Reserves
On March 16, 2022, the Board approved raising the interest rate paid on reserve balances from 0.15 percent to 0.4 percent, effective March 17, 2022.10 This action was taken to support the FOMC's decision on March 16, 2022, to raise the target range for the federal funds rate by 25 basis points, to a range of 1/4 to 1/2 percent.
Voting for this action: Chair Pro Tempore Powell and Governors Bowman, Brainard, and Waller.
On May 4, 2022, the Board approved raising the interest rate paid on reserve balances from 0.4 percent to 0.9 percent, effective May 5, 2022.11 This action was taken to support the FOMC's decision on May 4, 2022, to raise the target range for the federal funds rate by 50 basis points, to a range of 3/4 to 1 percent.
Voting for this action: Chair Pro Tempore Powell and Governors Bowman, Brainard, and Waller.
On June 15, 2022, the Board approved raising the interest rate paid on reserve balances from 0.9 percent to 1.65 percent, effective June 16, 2022.12 This action was taken to support the FOMC's decision on June 15, 2022, to raise the target range for the federal funds rate by 75 basis points, to a range of 1-1/2 to 1-3/4 percent.
Voting for this action: Chair Powell, Vice Chair Brainard, and Governors Bowman, Cook, Jefferson, and Waller.
On July 27, 2022, the Board approved raising the interest rate paid on reserve balances from 1.65 percent to 2.4 percent, effective July 28, 2022.13 This action was taken to support the FOMC's decision on July 27, 2022, to raise the target range for the federal funds rate by 75 basis points, to a range of 2-1/4 to 2-1/2 percent.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Cook, Jefferson, and Waller.
On September 21, 2022, the Board approved raising the interest rate paid on reserve balances from 2.4 percent to 3.15 percent, effective September 22, 2022.14 This action was taken to support the FOMC's decision on September 21, 2022, to raise the target range for the federal funds rate by 75 basis points, to a range of 3 to 3-1/4 percent.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Cook, Jefferson, and Waller.
On November 2, 2022, the Board approved raising the interest rate paid on reserve balances from 3.15 percent to 3.9 percent, effective November 3, 2022.15 This action was taken to support the FOMC's decision on November 2, 2022, to raise the target range for the federal funds rate by 75 basis points, to a range of 3-3/4 to 4 percent.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Cook, Jefferson, and Waller.
On December 14, 2022, the Board approved raising the interest rate paid on reserve balances from 3.9 percent to 4.4 percent, effective December 15, 2022.16 This action was taken to support the FOMC's decision on December 14, 2022, to raise the target range for the federal funds rate by 50 basis points, to a range of 4-1/4 to 4-1/2 percent.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Cook, Jefferson, and Waller.
Discount Rates for Depository Institutions in 2022
Under the Federal Reserve Act, the boards of directors of the Federal Reserve Banks must establish rates on discount window loans to depository institutions at least every 14 days, subject to review and determination by the Board of Governors. Therefore, about every two weeks the Board considers proposals by the Reserve Banks for the level of the primary credit rate and for the formulas used to compute the secondary and seasonal credit rates.17 For the levels of Federal Reserve Bank interest rates on loans to depository institutions at year-end, see table E.1.18
Table E.1. Federal Reserve Bank interest rates on loans to depository institutions, December 31, 2022
Percent
| Reserve Bank | Primary credit | Secondary credit | Seasonal credit |
|---|---|---|---|
| All banks | 4.50 | 5.00 | 4.40 |
Primary, Secondary, and Seasonal Credit
Primary credit, the Federal Reserve's main lending program for depository institutions, is extended at the primary credit rate. It is made available, with minimal administration, as a source of liquidity to depository institutions that, in the judgment of the lending Federal Reserve Bank, are in generally sound financial condition. During 2022, the Board approved seven increases in the primary credit rate, bringing the rate from 1/4 percent to 4-1/2 percent.
Following changes to the primary credit rate program announced by the Board on March 15, 2020, in 2022 depository institutions could borrow primary credit for periods as long as 90 days, prepayable and renewable by the borrower on a daily basis.19
Secondary credit is available in appropriate circumstances to depository institutions that do not qualify for primary credit. The secondary credit rate is set at a spread above the primary credit rate. Throughout 2022, the spread was set at 50 basis points. At year-end, the secondary credit rate was 5 percent.
Seasonal credit is available to smaller depository institutions to meet liquidity needs that arise from regular swings in their loans and deposits. The rate on seasonal credit is calculated every two weeks as an average of selected money market yields, typically resulting in a rate close to the target range for the federal funds rate. At year-end, the seasonal credit rate was 4.40 percent.
Votes on Changes to Discount Rates for Depository Institutions
During 2022, there were seven increases in the primary credit rate, and the Board approved proposals by the Reserve Banks to renew the formulas used to compute the secondary and seasonal credit rates. Details on the seven actions by the Board to approve increases in the primary credit rate are provided below.
March 16, 2022. Effective March 17, 2022, the Board approved actions taken by the boards of directors of the Federal Reserve Banks of Boston, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, and San Francisco to increase the primary credit rate from 1/4 percent to 1/2 percent. On March 17, 2022, the Board approved identical actions subsequently taken by the boards of directors of the Federal Reserve Banks of New York and Dallas, effective immediately.
Voting for this action: Chair Pro Tempore Powell and Governors Brainard, Bowman, and Waller.
May 4, 2022. Effective May 5, 2022, the Board approved actions taken by the boards of directors of all 12 Federal Reserve Banks to increase the primary credit rate from 1/2 percent to 1 percent.
Voting for this action: Chair Pro Tempore Powell and Governors Brainard, Bowman, and Waller.
June 15, 2022. Effective June 16, 2022, the Board approved actions taken by the board of directors of the Federal Reserve Bank of Minneapolis to increase the primary credit rate from 1 percent to 1-3/4 percent. On June 16, 2022, the Board approved identical actions subsequently taken by the boards of directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Chicago, St. Louis, Kansas City, and Dallas, effective immediately. On June 17, 2022, the Board approved identical actions subsequently taken by the boards of directors of the Federal Reserve Banks of Atlanta and San Francisco, effective immediately.
Voting for this action: Chair Powell, Vice Chair Brainard, and Governors Bowman, Waller, Cook, and Jefferson.
July 27, 2022. Effective July 28, 2022, the Board approved actions taken by the boards of directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, Kansas City, Dallas, and San Francisco to increase the primary credit rate from 1-3/4 percent to 2-1/2 percent. On July 28, 2022, the Board approved identical actions subsequently taken by the boards of directors of the Federal Reserve Banks of St. Louis and Minneapolis, effective immediately.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Jefferson.
September 21, 2022. Effective September 22, 2022, the Board approved actions taken by the boards of directors of the Federal Reserve Banks of Boston, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Kansas City, and Dallas to increase the primary credit rate from 2-1/2 percent to 3-1/4 percent. On September 22, 2022, the Board approved identical actions subsequently taken by the boards of directors of the Federal Reserve Banks of New York, Minneapolis, and San Francisco, effective immediately.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Jefferson.
November 2, 2022. Effective November 3, 2022, the Board approved actions taken by the boards of directors of the Federal Reserve Banks of Boston, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Dallas, and San Francisco to increase the primary credit rate from 3-1/4 percent to 4 percent. On November 3, 2022, the Board approved identical actions subsequently taken by the boards of directors of the Federal Reserve Banks of New York, Philadelphia, and Kansas City, effective immediately.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Jefferson.
December 14, 2022. Effective December 15, 2022, the Board approved actions taken by the boards of directors of all 12 Federal Reserve Banks to increase the primary credit rate from 4 percent to 4-1/2 percent.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Jefferson.
The Board of Governors and the Government Performance and Results Act
Overview
The Government Performance and Results Act (GPRA) of 1993, as amended by the GPRA Monetization Act of 2010, requires federal agencies to prepare a strategic plan covering a multiyear period and to submit an annual performance plan and an annual performance report. Although the Board is not covered by GPRA, the Board voluntarily complies with the spirit of the Act and, like other federal agencies, publicly publishes a multiyear Strategic Plan as well as an Annual Performance Plan and an Annual Performance Report.20
Strategic Plan, Performance Plan, and Performance Report
On December 27, 2019, the Board published the Strategic Plan 2020–23, which outlines the organization's priorities across five functional areas—Monetary Policy and Financial Stability, Supervision, Payment System and Reserve Bank Oversight, Public Engagement and Community Development, and Mission Enablement—for maintaining the stability, integrity, and efficiency of the nation's monetary, financial, and payments systems. In formulating the Strategic Plan 2020–23, the Board identified and prioritized the goals and objectives paramount to advancing the organization's mission while allowing for appropriate flexibility to respond to emerging and evolving challenges.
The Annual Performance Plan sets forth the projects and initiatives in support of the Board's Strategic Plan's goals and objectives during a one-year period. The Annual Performance Plan helps the organization identify and prioritize investments and dedicate sufficient resources across the five functions to meet its mission, while maintaining ongoing operations.
The Annual Performance Report summarizes the Board's accomplishments throughout the performance year toward achieving the goals and objectives identified in that year's Annual Performance Plan. The Annual Performance Report provides transparency into the organization's activities and helps the Board to communicate the continued fulfillment of its dual mandate to the U.S. Congress and the public.
Ultimately, the organization's planning and reporting processes enable the Board to identify, prioritize, and progress those activities most critical to advancing the organization's work.
Footnotes
1. Chair Powell served as Chair Pro Tempore from February 5 through May 23, 2022, when he was sworn in for a second term as Chair. Governor Brainard was sworn in as Vice Chair, and Governors Cook and Jefferson were sworn in as members of the Board, on May 23, 2022. Vice Chair for Supervision Barr was sworn in on July 19, 2022. Return to text
2. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-06-06/pdf/2022-11090.pdf. Return to text
3. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-10-11/pdf/2022-21838.pdf. Return to text
4. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2023-01-26/pdf/2023-00213.pdf. Return to text
5. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-10-24/pdf/2022-23002.pdf. Return to text
6. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-10-04/pdf/2022-21414.pdf. Return to text
7. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-08-19/pdf/2022-17885.pdf. Return to text
8. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-05-31/pdf/2022-10414.pdf. Return to text
9. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-12-08/pdf/2022-26615.pdf, which also provides information on the effective dates for the amendments. Return to text
10. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20220316a1.htm. Return to text
11. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20220504a1.htm. Return to text
12. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20220615a1.htm. Return to text
13. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20220727a1.htm. Return to text
14. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20220921a1.htm. Return to text
15. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20221102a1.htm. Return to text
16. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20221214a1.htm. Return to text
17. See the minutes of the Board of Governors discount rate meetings at https://www.federalreserve.gov/monetarypolicy/discountrate.htm. Return to text
18. For current and historical discount rates, see https://www.frbdiscountwindow.org. Return to text
19. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315b.htm. Return to text
20. The Strategic Plan, Annual Performance Plan, and Annual Performance Report are available on the Federal Reserve Board's website at https://www.federalreserve.gov/publications/gpra.htm. Return to text