15 Jan 2025
📉Federal Reserve's Regulation A Changes Affect Business Credit Rates
Regulation A: Extensions of Credit by Federal Reserve Banks
Summary
The Board of Governors of the Federal Reserve System ("Board") has adopted final amendments to its Regulation A to reflect the Board's approval of a decrease in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically decreased by formula as a result of the Board's primary credit rate action.
Agencies
- Federal Reserve System
Business Impact
$$ - Med
The regulation changes indicate a reduction in primary and secondary credit rates by the Federal Reserve, affecting borrowing costs for businesses. This may encourage borrowing and investment, which is essential for economic growth. The amendments directly influence the financial landscape for businesses that utilize Federal Reserve credit facilities.