Federal Register #2026-20037

Federal Reserve rule sets interest on reserve balances at 3.90%

The Federal Reserve Board issued a final rule changing the interest rate paid on reserve balances; this is a regulatory action, not a procurement opportunity. - Government agency: Board of Governors of the Federal Reserve System. - Related organization: Federal Open Market Committee (FOMC), whose federal funds rate target range the change is intended to support. - Action: Amends Regulation D to set the interest on reserve balances (IORB) rate at 3.90%, an increase of 0.25 percentage points from the prior rate. - Procurement: No vendors, OEMs, products, quantities, or services are requested.

Description

The Board of Governors of the Federal Reserve System adopted final amendments to Regulation D revising the interest rate paid on balances maintained at Federal Reserve Banks by or on behalf of eligible institutions. The amendments set the interest on reserve balances (IORB) rate at 3.90 percent, an increase of 0.25 percentage points from its prior level. The change is intended to enhance IORB’s role in maintaining the federal funds rate within the target range established by the Federal Open Market Committee. The rule is effective September 30, 2026; the rate change was applicable beginning September 17, 2026.

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