The Federal Reserve Board has announced that it has authorized ongoing small-value offerings of term deposits under the Term Deposit Facility (TDF).
These small-value offerings are designed to ensure the operational readiness of the TDF and to provide eligible institutions with an opportunity to gain familiarity with term deposit procedures. The development of the TDF and the ongoing small-value TDF offerings are a matter of prudent planning and have no implications for the near-term conduct of monetary policy.
The terms and frequency for these auctions may evolve over time, but the Board currently anticipates that TDF auctions will be held about every other month. Following this approach, two auctions will be conducted over the remainder of this year on October 4 and November 29; the corresponding settlements will occur on October 7 and December 2, respectively.
See press release for full details.