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 2024. Board members' votes are provided after each summary. Policy actions were implemented through (1) rules and regulations, (2) policy statements and other actions, and (3) discount rates for depository institutions. 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 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 Y (Bank Holding Companies and Change in Bank Control)
Effective October 1, 2025. On July 11, 2024, the Board approved a final rule (Docket No. R-1807), issued jointly with the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Consumer Financial Protection Bureau (CFPB), and the Federal Housing Finance Agency, to implement quality control standards, as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, related to automated valuation models (AVMs) used in determining the value of real estate collateral securing mortgage loans.1 Under the final rule ("Quality Control Standards for Automated Valuation Models Used for Mortgage Lending Purposes," subpart O of Regulation Y), Board-regulated institutions that engage in certain credit decisions or securitization determinations must adopt policies, practices, procedures, and control systems to ensure that the AVMs used in these transactions adhere to quality control standards designed to ensure a high level of confidence in the estimates produced; protect against manipulation of data; seek to avoid conflicts of interest; require random sample testing and reviews; and comply with applicable non- discrimination laws.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
Regulation BB (Community Reinvestment)
Effective April 1, 2024. On March 20, 2024, the Board approved a supplemental rule (Docket No. R-1830), issued jointly with the OCC and the FDIC (together with the Board, the agencies), related to the agencies' Community Reinvestment Act final rule that was issued on October 24, 2023 (the 2023 CRA final rule). The supplemental rule has two components.2 First, the agencies adopted an interim final rule that extends the applicability date of two provisions of the 2023 CRA final rule, from April 1, 2024, to January 1, 2026, and requests comment on this extension. Second, the agencies adopted a final rule that makes various technical amendments to the 2023 CRA final rule and related regulations.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
Regulation HH (Designated Financial Market Utilities)
Effective April 15, 2024. On March 1, 2024, the Board approved a final rule (Docket No. R-1782) to amend the requirements relating to operational risk management for certain financial market utilities (FMUs) that have been designated as systemically important (designated FMUs).3 The amendments update, refine, and add specificity to existing requirements, including those for business continuity planning and third-party risk management, to reflect changes in the operational risk, technology, and regulatory landscape in which designated FMUs operate. The final rule also adopts specific incident-notification requirements.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
Policy Statements and Other Actions
Bank Term Funding Program
On January 23, 2024, the Board approved a modification to the interest rate applicable to new Bank Term Funding Program (BTFP) loans such that the BTFP rate would not be lower than the interest on reserve balances rate in effect on the day the loan was made.4 The Board also announced that the BTFP would cease making new loans on March 11, 2024, as scheduled.
Voting for these actions: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
Disaster-Related Appraisal Exceptions
Effective March 12, 2024. On March 4, 2024, the Board approved a statement and order (Docket No. OP-1829), issued jointly with the OCC, the FDIC, and the NCUA, granting temporary exceptions to certain regulatory appraisal requirements for transactions involving real property located in a designated disaster area of Hawaii, provided the transactions meet certain criteria.5 The exceptions were intended to facilitate disaster recovery as a result of the 2023 wildfires in Maui County and will expire three years after the date of the disaster declaration.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
Reconsiderations of Value for Residential Real Estate Valuations
Effective July 26, 2024. On July 11, 2024, the Board approved final interagency guidance (Docket No. OP-1809) that highlights risks associated with deficient residential real estate valuations and describes how financial institutions may incorporate reconsiderations of value processes and controls into established risk-management functions.6 The guidance, issued jointly with the OCC, the FDIC, the NCUA, and the CFPB, also provides examples of policies and procedures that a financial institution may choose to implement to help identify, address, and mitigate the risk of discrimination impacting residential real estate valuations.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
Resolution Plan Guidance
On August 2, 2024, the Board approved final guidance (Docket Nos. OP-1816 and OP-1817), issued jointly with the FDIC, to assist certain large banking organizations with their 2025 and subsequent resolution plan submissions.7 In the guidance, which generally applies to domestic and foreign banking organizations with more than $250 billion in total consolidated assets but that are not the largest and most complex banks, the Board and FDIC provide their expectations for the resolution plans of these banking organizations regarding their capital, liquidity, governance mechanisms, and other key areas of potential vulnerabilities. The content of the guidance depends on a banking organization's status as a domestic or foreign firm and its chosen resolution plan strategy, whether single point of entry or multiple point of entry. In addition, the Board extended the deadline for these domestic and foreign banking organizations to submit their resolution plans from March 31 to October 1, 2025.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
Guidelines for Evaluating Account and Services Requests
Effective December 12, 2024. On December 5, 2024, the Board approved a technical clarification (Docket No. OP-1747) that its account access guidelines also apply to excess balance accounts (EBAs).8 An EBA is a limited-purpose account at a Federal Reserve Bank established for maintaining the reserve balances of eligible institutions. An EBA is managed by an agent on behalf of the participating institutions. The Board's account access guidelines, which were implemented in 2022, establish a transparent, risk-based, and consistent set of factors for reviewing requests for accounts and services.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
Interest on Reserves
On September 18, 2024, the Board approved lowering the interest rate paid on reserve balances from 5.4 percent to 4.9 percent, effective September 19, 2024.9 This action was taken to support the FOMC's decision on September 18, 2024, to lower the target range for the federal funds rate by 50 basis points, to a range of 4-3/4 to 5 percent.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
On November 7, 2024, the Board approved lowering the interest rate paid on reserve balances from 4.9 percent to 4.65 percent, effective November 8, 2024.10 This action was taken to support the FOMC's decision on November 7, 2024, to lower the target range for the federal funds rate by 25 basis points, to a range of 4-1/2 to 4-3/4 percent.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
On December 18, 2024, the Board approved lowering the interest rate paid on reserve balances from 4.65 percent to 4.4 percent, effective December 19, 2024.11 This action was taken to support the FOMC's decision on December 18, 2024, to lower the target range for the federal funds rate by 25 basis points, to a range of 4-1/4 to 4-1/2 percent.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
Discount Rates for Depository Institutions in 2024
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.12 For the levels of Federal Reserve Bank interest rates on loans to depository institutions at year-end, see table E.1.13
Table E.1. Federal Reserve Bank interest rates on loans to depository institutions, December 31, 2024
Percent
| Reserve Bank | Primary credit | Secondary credit | Seasonal credit |
|---|---|---|---|
| All Reserve Banks | 4.50 | 5.00 | 4.50 |
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 2024, the Board approved three decreases in the primary credit rate, bringing the rate from 5-1/2 percent to 4-1/2 percent.
Following changes to the primary credit program announced by the Board on March 15, 2020, depository institutions may borrow primary credit for periods as long as 90 days, prepayable and renewable by the borrower daily.14
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 2024, 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 4.50 percent.
Votes on Changes to Discount Rates for Depository Institutions
During 2024, there were three decreases 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. Each FOMC meeting associated with a change in the primary credit rate is listed below with the details of the Board's actions to approve those changes. Reserve Bank requests to establish the primary credit rate may be submitted on varying dates, up to and including the effective date.
FOMC meeting ending on September 18, 2024. At the meeting, the Board approved an action taken by the board of directors of the Federal Reserve Bank of Atlanta to decrease the primary credit rate from 5-1/2 percent to 5 percent, effective September 19, 2024. After the meeting and before the close of business on the effective date, the Board approved identical actions taken by the boards of directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco, effective September 19, 2024.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
FOMC meeting ending on November 7, 2024. At the meeting, the Board approved actions taken by the boards of directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, Minneapolis, Dallas, and San Francisco to decrease the primary credit rate from 5 percent to 4-3/4 percent, effective November 8, 2024. After the meeting and before the close of business on the effective date, the Board approved identical actions taken by the boards of directors of the Federal Reserve Banks of St. Louis and Kansas City, effective November 8, 2024.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
FOMC meeting ending on December 18, 2024. At the meeting, the Board approved actions taken by the boards of directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, and San Francisco to decrease the primary credit rate from 4-3/4 percent to 4-1/2 percent, effective December 19, 2024. After the meeting and before the close of business on the effective date, the Board approved identical actions taken by the boards of directors of the Federal Reserve Banks of St. Louis, Minneapolis, Kansas City, and Dallas, effective December 19, 2024.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and Governors Bowman, Waller, Cook, and Kugler.
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 Modernization 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 GPRA and, like other federal agencies, publishes a multiyear strategic plan as well as an annual performance plan and an annual performance report. These reports are publicly available among the Board's publications.15
Four-Year Strategic Plan, Annual Performance Plan, and Annual Performance Report
On December 15, 2023, the Board published the Strategic Plan 2024–27, which outlined the organization's priorities across five functional areas—Monetary Policy and Financial Stability, Supervision and Regulation, Payment System and Reserve Bank Oversight, Consumer Protection and Community Development, and Mission Advancement. In formulating the Strategic Plan 2024–27, 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-critical work, while maintaining ongoing operations.
The Annual Performance Report summarizes the Board's accomplishments throughout the performance year toward achieving the projects and initiatives identified in that year's Annual Performance Plan. The Annual Performance Report provides transparency into the organization's high-priority activities.
Ultimately, the organization's planning and performance reporting processes enable the Board to identify, prioritize, and progress those activities most critical to advancing the organization's work and communicate this to the public.
Footnotes
1. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2024-08-07/pdf/2024-16197.pdf. Return to text
2. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2024-03-29/pdf/2024-06497.pdf. Return to text
3. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2024-03-15/pdf/2024-05322.pdf. Return to text
4. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20240124a.htm. See also press releases at https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm and https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm. Return to text
5. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2024-03-12/pdf/2024-05159.pdf. Return to text
6. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2024-07-26/pdf/2024-16200.pdf. Return to text
7. See Federal Register notices at https://www.govinfo.gov/content/pkg/FR-2024-08-15/pdf/2024-18191.pdf and https://www.govinfo.gov/content/pkg/FR-2024-08-15/pdf/2024-18186.pdf. Return to text
8. See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2024-12-12/pdf/2024-29250.pdf. Return to text
9. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20240918a.htm. Return to text
10. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20241107a1.htm. Return to text
11. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20241218a1.htm. Return to text
12. See the minutes of the Board of Governors discount rate meetings at https://www.federalreserve.gov/monetarypolicy/discountrate.htm. Return to text
13. For current and historical discount rates, see https://www.frbdiscountwindow.org. Return to text
14. See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315b.htm. Return to text
15. 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