Free Trial

MNI BRIEF: Fed Sets Out To Replace IOER, Simplify Rate Formula

(MNI) WASHINGTON
WASHINGTON (MNI)

The U.S. Federal Reserve announced Tuesday it is taking a formal step to take the interest on required reserves rate and the interest on excess reserves rate and replacing them with a single "interest on reserve balances" ("IORB") rate.

The Fed published an "notice of proposed rulemaking" laying out the issues it is considering and said it would make other conforming changes, such as simplifying the formula used to calculate the amount of interest paid on balances maintained in accounts at the Fed.

The public will have 60 days to submit comments, which the Fed can use to formulate its rules.

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.