Extensions of Credit by Federal Reserve Banks
May 28, 2002
Circular No. 11443

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

In a Federal Register notice (pdf - 63kb), the Federal Reserve Board requests comments by August 22, 2002, on a proposed restructuring of Federal Reserve credit programs. The proposal, which does not represent a change in the stance of monetary policy, would, among other changes, replace the existing adjustment and extended credit programs with new programs called primary credit and secondary credit, respectively. The interest rate on primary credit would be above, rather than below, short-term market rates. The change would sharply reduce the administrative burden associated with the extension and use of Federal Reserve credit.

Questions on this matter may be directed, at this Bank, to William A. Walsh, Discount Officer.