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Fed to start paying interest on excess reserves

Posted on October 06, 2008

From the Federal Reserve:The Financial Services Regulatory Relief Act of 2006 originallyauthorized the Federal Reserve to begin paying interest on balancesheld by or on behalf of depository institutions beginning October 1,2011. The recently enacted Emergency Economic Stabilization Act of 2008accelerated the effective date to October 1, 2008. Employing the accelerated authority, the Board has approved a ruleto amend its Regulation D (Reserve Requirements of DepositoryInstitutions) to direct the Federal Reserve Banks to pay interest onrequired reserve balances (that is, balances held to sati...

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fed , federal reserve