Release Date: April 26, 2013
For immediate release
The Federal Reserve plans to conduct fixed-rate offerings of term deposits with full allotment of tenders under the Term Deposit Facility (TDF) as part of the ongoing program of small-value offerings announced on September 8, 2010. The Board had previously announced that it would consider various formats for the TDF as part of the development of the facility.
These small-value operations 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 operations are a matter of prudent planning and have no implications for the near-term conduct of monetary policy.
The Federal Reserve plans to use a fixed-rate, full-allotment format to offer 28-day term deposits on May 20 with settlement on May 23. Under this format, the Federal Reserve will announce the operation interest rate, and each participating institution may submit one tender that will be awarded in full at the pre-determined rate. Official operation terms, including the fixed-rate and maximum tender size, will be announced nearer to the time of the operation.
Additional information, including the steps that institutions must complete to be eligible to participate in term deposit operations are available at http://www.frbservices.org/centralbank/term_deposit_facility.html .
For media inquiries, call 202-452-2955.