Accepted M-001-DEC-2025 | Establishment of the FRB Discount Rate for DEC 2025

[DonTrillions]

Establishment of the Official Discount Rate — December 2025​

Motion No.: M-001-DEC-2025
Category: Monetary Policy
Legal Basis: Federal Reserve Act (FRA) §§ 4, 5, 6, 8, 9 & 11

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WHEREAS​

The Federal Reserve Bank of Redmont is mandated under the Federal Reserve Act, and pursuant to the Discount Rate Framework (Policy M-001), to establish and review an official Discount Rate on a monthly basis as the primary reference rate for FRB monetary operations, including Treasury Bill yields, interest on excess reserves, standing liquidity facilities, and penalty interest applied to reserve deficiencies; and the Federal Reserve Board has reviewed prevailing liquidity conditions, operational requirements, and monetary alignment for the month of December 2025;

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NOW, THEREFORE, BE IT RESOLVED THAT​

1. The Official FRB Discount Rate for December 2025 is hereby set at 1.20% per month.
2. This rate shall apply to all FRB interest-bearing operations during the month of December 2025, including but not limited to:
   • Yield calculations for FRB Treasury Bills;
   • Interest on Excess Reserves held by Financial Institutions;
   • Lending rates under the Standing Lending and Repo Facility;
   • Penalty interest applied to reserve deficiencies.
3. The Discount Rate shall remain in force for the full calendar month of December 2025 unless amended by subsequent Board decision.
4. The rate shall be reviewed in accordance with the monthly review cycle established under Policy M-001.

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VOTING​

This motion shall be adopted upon approval by a simple majority of the sitting members of the Federal Reserve Board.
In the event of a tie, the Secretary of the Department of Commerce shall cast the deciding vote, pursuant to the Federal Reserve Act.

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EFFECTIVE DATE​

This motion shall take effect immediately upon passage and shall govern all applicable FRB operations for December 2025.

 

[DonTrillions]

Accepted

This Policy is hereby signed into effect
Signed,
DonTrillions
Governor | Federal Reserve Bank