Operating Policy
Statement Regarding System Open Market Account Activity
July 3, 2008

Given the current level of the Federal Reserve's System Open Market Account ("SOMA”) Treasury bill holdings, the Open Market Trading Desk plans to invest the proceeds from maturing bills into new 4-week bill offerings until further notice. This practice will not change the total amount of Treasury bills owned by SOMA.

Accordingly, on Thursday, July 10, 2008, SOMA will invest the full amount of maturing Treasury bill holdings ($493,784,000) into the 8/7/2008 4-week Treasury bill (912795F89).