Federal Executive Branch
Here's a look at documents from the U.S. Executive Branch
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Fed Issues Statement by Governor Christopher J. Waller
WASHINGTON, Jan. 31 -- The Federal Reserve issued the following statement on Jan. 30, 2026 by Governor Christopher J. Waller:
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Statement by Governor Christopher J. Waller
I dissented at the most recent meeting of the Federal Open Market Committee (FOMC) after concluding that cutting the policy rate by 25 basis points was the appropriate stance of policy. Three cuts to the policy rate last year have moved it closer to a neutral setting but monetary policy is still restricting economic activity, and economic data make it clear to me further easing is needed.
First, in contrast to the continued
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WASHINGTON, Jan. 31 -- The Federal Reserve issued the following statement on Jan. 30, 2026 by Governor Christopher J. Waller:
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Statement by Governor Christopher J. Waller
I dissented at the most recent meeting of the Federal Open Market Committee (FOMC) after concluding that cutting the policy rate by 25 basis points was the appropriate stance of policy. Three cuts to the policy rate last year have moved it closer to a neutral setting but monetary policy is still restricting economic activity, and economic data make it clear to me further easing is needed.
First, in contrast to the continuedsolid growth in economic activity, the labor market remains weak. Despite ticking down in its most recent reading, the unemployment rate has risen since the middle of last year. Payroll gains in 2025 were very weak. Compared to the prior ten-year average of about 1.9 million jobs created per year, payrolls increased just under 600,000 for 2025. And, last year's data will be revised downward soon to likely show that there was virtually no growth in payroll employment in 2025. Zero. Zip. Nada.
Let this sink in for a moment--zero job growth versus an average of almost 2 million for the 10 years prior to 2025. This does not remotely look like a healthy labor market. While lower labor supply was surely a factor, it also indicates considerable weakness in labor demand. Employers are reluctant to fire workers, but also very reluctant to hire. I have heard in multiple outreach meetings of planned layoffs in 2026. This indicates to me that there is considerable doubt about future employment growth and suggests that a substantial deterioration in the labor market is a significant risk.
Second, though inflation is elevated from tariff effects, appropriate monetary policy is to "look through" these effects as long as inflation expectations are anchored, which they are. Inflation excluding tariff effects is running close to the FOMC's 2 percent target and on a path to sustainably reach that goal.
With total inflation excluding tariff effects close to our target at just slightly above 2 percent and a weak labor market, the policy rate should be closer to neutral, which the median FOMC participant estimates is 3 percent, and not where we are--50 to 75 basis points above 3 percent. I favored reducing the policy rate to strengthen the labor market and guard against a deterioration that would be harder to address once it has begun.
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Original text here: https://www.federalreserve.gov/newsevents/speech/waller20260130a.htm
Justice Department Requires Reddy Ice to Divest Assets to Proceed With Proposed Acquisition of Arctic Glacier
WASHINGTON, Jan. 31 -- The U.S. Department of Justice issued the following news release on Jan. 30, 2026:
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Justice Department Requires Reddy Ice to Divest Assets to Proceed with Proposed Acquisition of Arctic Glacier
The Proposed Settlement Requires a Substantial Divestiture that will Preserve Competition for Packaged Ice Sold to Retail Chain, Airlines, Airline Caterers in Multiple States
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The Justice Department's Antitrust Division announced today that it will require Stone Canyon Industries Holdings LP (owner of Reddy Ice) and Chill Parent Holdco LP (owner of Arctic Glacier) to divest
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WASHINGTON, Jan. 31 -- The U.S. Department of Justice issued the following news release on Jan. 30, 2026:
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Justice Department Requires Reddy Ice to Divest Assets to Proceed with Proposed Acquisition of Arctic Glacier
The Proposed Settlement Requires a Substantial Divestiture that will Preserve Competition for Packaged Ice Sold to Retail Chain, Airlines, Airline Caterers in Multiple States
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The Justice Department's Antitrust Division announced today that it will require Stone Canyon Industries Holdings LP (owner of Reddy Ice) and Chill Parent Holdco LP (owner of Arctic Glacier) to divestassets in California, Massachusetts, New York, Oregon, and Washington to resolve antitrust concerns arising from Reddy Ice's proposed more-than $126 million acquisition of Arctic Glacier. The proposed divestitures preserve competition for packaged ice sold to retail chains, airlines, and airline caterers in these states.
The Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
"The Antitrust Division is committed to enforcing the antitrust laws in markets that impact American consumers and businesses," said Assistant Attorney General Abigail Slater of the Justice Department's Antitrust Division. "This transaction, as originally proposed, would have led to higher prices and lower service quality on packaged ice, a staple Americans enjoy everywhere from backyard cookouts to cross-country flights. Today's settlement will maintain competition for the sale of packaged ice to the benefit of American consumers."
As detailed in the complaint, Reddy Ice and Arctic Glacier are the largest suppliers of packaged ice sold to retail chains in Oregon, Washington, and Imperial and Riverside counties in southern California. They are also the largest suppliers of packaged ice sold to airlines and airline caterers in the Boston and New York City metropolitan areas.
The proposed settlement resolves anticompetitive concerns in these geographies where the parties currently compete, either directly via their facilities or via co-packers that manufacture and deliver ice to the parties' customers on their behalf.
Under the terms of the proposed settlement, the parties must divest (1) Reddy Ice's manufacturing and distribution facilities and customer relationships and contracts, along with other assets, in Imperial and Riverside counties in southern California and in Washington; and (2) divest customer relationships and contracts, along with other assets, in Oregon and in the Boston and New York City metropolitan areas. The parties must also provide advance notification for certain future transactions and allow a monitor to supervise the parties' divestiture of the assets and compliance with the consent decree.
Reddy Ice is the largest producer of packaged ice in the United States with annual revenues of approximately $511 million. The company sells packaged ice in 37 states and the District of Columbia.
Arctic Glacier is the third largest producer of packaged ice in the United States with annual revenues of approximately $306 million. It sells packaged ice in 19 states.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person should submit written comments concerning the proposed settlement within 60 days following the publication to Jill Maguire, Acting Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, DC 20530. At the conclusion of the public comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
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Note: View the Proposed Final Judgement here (https://www.justice.gov/atr/media/1426121/dl?inline) and the Complaint here (https://www.justice.gov/atr/media/1426116/dl?inline).
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Original text here: https://www.justice.gov/opa/pr/justice-department-requires-reddy-ice-divest-assets-proceed-proposed-acquisition-arctic
Hanscom E&TC Key to Enhancing Acquisition Skills of Workforce
HANSCOM AFB, Massachusetts, Jan. 31 -- The U.S. Air Force Hanscom Air Force Base issued the following news:
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Hanscom E&TC key to enhancing acquisition skills of workforce
By Andrew Lane, 66th Air Base Group Public Affairs
The 66th Force Support Squadron Education and Training Center will host nearly 40 in-person courses in fiscal year 2026.
Offerings include leadership classes, cybersecurity assessments, data analytics and a variety of acquisitions courses intended to develop skills that support the Air Force mission.
"There are many popular courses on our schedule this year," said Jim
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HANSCOM AFB, Massachusetts, Jan. 31 -- The U.S. Air Force Hanscom Air Force Base issued the following news:
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Hanscom E&TC key to enhancing acquisition skills of workforce
By Andrew Lane, 66th Air Base Group Public Affairs
The 66th Force Support Squadron Education and Training Center will host nearly 40 in-person courses in fiscal year 2026.
Offerings include leadership classes, cybersecurity assessments, data analytics and a variety of acquisitions courses intended to develop skills that support the Air Force mission.
"There are many popular courses on our schedule this year," said JimMuise, Hanscom AFB E&TC director. "We've worked with the team at the Air Force Institute of Technology and The Office of the Assistant Secretary of the Air Force for Acquisition, Technology and Logistics to curate an engaging lineup."
These continuing education courses from AFIT's School of Systems and Logistics and SAF/AQ are provided at no cost to students and held in-person throughout the year.
Muise, who's been with Hanscom AFB E&TC since 2015, has seen the education and training landscape change over the last ten years.
"Several years ago, we used to have nearly 100 students in the building on any given day," he said. "We still focus on what in-person classes we can offer, but we also see a lot of success in virtual learning environments."
The catalog of virtual classes has proven to be a key component of the Air Force Life Cycle Management Center Focus Week initiatives.
"Virtual classes remain a big part of Focus Week," said Muise. "We can reach more participants, including those across our geographically separated units, and still obtain desirable educational outcomes."
Focus Week classes include a variety of instructor-led courses and self-paced opportunities as well as in-person soft skills courses.
All courses assist the acquisition workforce to earn mandated continuous learning points.
Although acquisition-coded positions have priority for some courses, all Air Force military and civilian employees are encouraged to register for opportunities that align with their career goals.
Whether it's related to the 2026 AFLCMC Focus Weeks, the Hanscom E&TC's AFIT continuing education schedule, or the Academic Year 2027 Civilian Development call, there are many opportunities for Team Hanscom personnel.
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Original text here: https://www.hanscom.af.mil/News/Article-Display/Article/4393202/hanscom-etc-key-to-enhancing-acquisition-skills-of-workforce/
BLS: Federal Employment Reached Lowest Level Since 2014
WASHINGTON, Jan. 31 (TNSLrpt) -- The U.S. Department of Labor Bureau of Labor Statistics issued the following document on Jan. 30, 2026, from Economics Daily:
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Federal employment reached lowest level since 2014
In October 2025, federal government employment fell by 179,000 to its lowest level since July 2014 as some federal employees who accepted a deferred resignation offer came off federal payrolls. Federal employees on furlough during the government shutdown were counted as employed in the establishment survey because they received pay, even if later than usual, for the pay period that
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WASHINGTON, Jan. 31 (TNSLrpt) -- The U.S. Department of Labor Bureau of Labor Statistics issued the following document on Jan. 30, 2026, from Economics Daily:
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Federal employment reached lowest level since 2014
In October 2025, federal government employment fell by 179,000 to its lowest level since July 2014 as some federal employees who accepted a deferred resignation offer came off federal payrolls. Federal employees on furlough during the government shutdown were counted as employed in the establishment survey because they received pay, even if later than usual, for the pay period thatincluded the 12th of the month.
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Chart: Federal government employment, January 1995-December 2025
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Federal government employment fell by 274,000 in 2025--the largest decline in any calendar year since 1946. Through November (the latest data available for most government agencies), the Department of Defense (https://data.bls.gov/timeseries/CES9091911001) shed 68,000 jobs in 2025, federal hospitals (https://data.bls.gov/timeseries/CES9091622001) shed 16,000 jobs, the U.S. Postal Service lost 6,000 jobs, and employment in other Federal agencies (https://data.bls.gov/timeseries/CES9091999901) fell by 185,000.
Note that federal government employment spikes every 10 years because of temporary hiring associated with the constitutionally mandated decennial census.
These data are from the Current Employment Statistics (https://www.bls.gov/ces/) program and are seasonally adjusted. Data for November and December 2025 are preliminary. We also have more charts of national employment, hours, and earnings data (https://www.bls.gov/charts/employment-situation/otm-employment-change-by-industry-confidence-intervals.htm).
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SUGGESTED CITATION
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Federal employment reached lowest level since 2014 at https://www.bls.gov/opub/ted/2026/federal-employment-reached-lowest-level-since-2014.htm (visited January 31, 2026).
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View original text plus charts and tables here: https://www.bls.gov/opub/ted/2026/federal-employment-reached-lowest-level-since-2014.htm
BLS Southeast Region Issues Report on Connecticut Job Openings and Labor Turnover November 2025
ATLANTA, Georgia, Jan. 31 (TNSLrpt) -- Connecticut Job Openings and Labor Turnover November 2025 - A report from U.S. Department of Labor Bureau of Labor Statistics Southeast Region - Jan. 30, 2026
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Connecticut had 74,000 job openings in November 2025, unchanged from October, the U.S. Bureau of Labor Statistics reported today. (See table 1.) Acting Regional Commissioner Michael G. Phinney noted that the job openings rate in Connecticut was 4.1 percent in November, unchanged from the previous month. (See chart 1 and table 2.) The job openings rate nationally was 4.3 percent in November and
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ATLANTA, Georgia, Jan. 31 (TNSLrpt) -- Connecticut Job Openings and Labor Turnover November 2025 - A report from U.S. Department of Labor Bureau of Labor Statistics Southeast Region - Jan. 30, 2026
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Connecticut had 74,000 job openings in November 2025, unchanged from October, the U.S. Bureau of Labor Statistics reported today. (See table 1.) Acting Regional Commissioner Michael G. Phinney noted that the job openings rate in Connecticut was 4.1 percent in November, unchanged from the previous month. (See chart 1 and table 2.) The job openings rate nationally was 4.3 percent in November and4.5 percent in October. (See table 3.) All data in this release are seasonally adjusted.
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Chart 1. Job openings rates for the United States and Connecticut, seasonally adjusted
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The ratio of unemployed persons per job opening in Connecticut was 1.0 in November. Nationwide, 37 states and the District of Columbia had ratios in November that were lower than the national measure of 1.1 unemployed persons per job opening; 10 states had ratios that were higher than the national ratio, and 3 states had ratios equal to the national measure. (See map 1.)
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Map 1. Number of unemployed persons per job opening by state, November 2025, seasonally
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In November, Connecticut had 54,000 hires and 51,000 separations, compared to 54,000 hires and 56,000 separations in October. (See chart 2.) Over the 12 months ending in November, hires have averaged 54,000 per month and separations have averaged 58,000 per month. These averages include workers who may have been hired and separated more than once during the year.
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Chart 2. Hires and total separations in Connecticut, seasonally adjusted (in thousands)
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Among the November separations in Connecticut, 30,000 were quits and 18,000 were layoffs and discharges, compared to 29,000 quits and 24,000 layoffs and discharges in October. (See chart 3.) Over the year, quits averaged 30,000 per month, ranging from 23,000 to 39,000. Layoffs and discharges have averaged 23,000 per month, ranging from 15,000 to 36,000.
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Chart 3. Quits and layoffs and discharges in Connecticut, seasonally adjusted (in thousands)
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Federal Government Shutdown
September 2025 state JOLTS estimates reported in this release include partial data that businesses self-reported electronically during the lapse in appropriations and data collected in November following the shutdown. October 2025 data presented in this release were collected in November following the shutdown, as originally planned. The October 2025 unemployment data are unavailable due to the shutdown, and therefore the number of unemployed persons per job opening is also unavailable.
Additionally, BLS temporarily suspended use of the monthly alignment methodology for October 2025 preliminary estimates; use of this methodology will resume with the publication of October 2025 final estimates. See the State Job Openings and Labor Turnover Technical Note for information on state JOLTS alignment methodology.
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Upcoming Change to the JOLTS State Estimates
The national State Job Openings and Labor Turnover news release will move from a monthly news release to an annual news release. The last monthly news release will occur with the December 2025 data published in February 2026. The first annual news release will be in July 2026. Going forward, monthly estimates for the prior calendar year will be published each year along with the annual news release. The annual news release will incorporate benchmark revisions to JOLTS national estimates, updated Current Employment Statistics (CES) employment estimates, and updated Quarterly Census of Employment and Wages (QCEW) data.
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State Job Openings and Labor Turnover Survey estimates for December 2025 are scheduled to be released on Thursday, February 19, 2026, at 10:00 a.m. (ET).
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Technical Note
This news release presents statistics from the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS). The JOLTS program provides information on labor demand and turnover. The state estimates produced by JOLTS are model-based incorporating JOLTS sample, Quarterly Census of Employment and Wages (QCEW), and Current Employment Statistics (CES) estimates. For more information see the JOLTS State Estimates Methodology.
Job Openings. Job openings include all positions that are open on the last business day of the reference month. A job is open only if it meets all three of these conditions:
* A specific position exists and there is work available for that position.
* The job could start within 30 days.
* The employer is actively recruiting workers from outside the establishment to fill the position.
The number of unemployed persons per job opening is a ratio of the level of unemployed persons and the level of job openings. The number of unemployed persons at the national level is an estimate from the Current Population Survey (CPS), while state-level unemployment estimates are modeled by the Local Area Unemployment Statistics (LAUS) program. A ratio of 1.0 means there is a job available for every unemployed person. Lower ratios signal tighter labor markets, where firms have more job openings than there are unemployed persons available to work. Higher ratios indicate there are more unemployed persons competing for each job opening.
Hires. Hires include all additions to the payroll during the entire reference month.
Separations. Separations include all separations from the payroll during the entire reference month and is reported by type of separation: quits, layoffs and discharges, and other separations.
* Quits include employees who left voluntarily, except for retirements or transfers to other locations.
* Layoffs and discharges include involuntary separations initiated by the employer.
* Other separations include retirements, transfers to other locations, separations due to employee disability, and deaths.
Levels and rates of other separations represent a small portion of total separations and are not published with the release of state estimates.
Complete definitions, including exclusions, and additional information about the State JOLTS data presented in this release are available in the State Job Openings and Labor Turnover Technical Note.
Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: 202-691-5200; Telecommunications Relay Service: 7-1-1.
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Table 1. Job openings and labor turnover for Connecticut, seasonally adjusted (in thousands)
Table 2. Job openings and labor turnover rates for Connecticut, seasonally adjusted
Table 3. Job openings and labor turnover rates for the United States, seasonally adjusted
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View original text plus charts and tables here: https://www.bls.gov/regions/northeast/news-release/2026/jobopeningslaborturnover_connecticut_20260130.htm
BLS Mid-Atlantic Region: West Virginia Job Openings and Labor Turnover - November 2025
PHILADELPHIA, Pennsylvania, Jan. 31 (TNSLrpt) -- The U.S. Department of Labor's Bureau of Labor Statistics - Mid-Atlantic Regional Information Office issued the following report:
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West Virginia Job Openings and Labor Turnover -- November 2025
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West Virginia had 45,000 job openings in November 2025, unchanged from October, the U.S. Bureau of Labor Statistics reported today. (See table 1.) Regional Commissioner Alexandra Hall Bovee noted that the job openings rate in West Virginia was 5.9 percent in November, unchanged from the previous month. (See chart 1 and table 2.) The job openings
... Show Full Article
PHILADELPHIA, Pennsylvania, Jan. 31 (TNSLrpt) -- The U.S. Department of Labor's Bureau of Labor Statistics - Mid-Atlantic Regional Information Office issued the following report:
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West Virginia Job Openings and Labor Turnover -- November 2025
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West Virginia had 45,000 job openings in November 2025, unchanged from October, the U.S. Bureau of Labor Statistics reported today. (See table 1.) Regional Commissioner Alexandra Hall Bovee noted that the job openings rate in West Virginia was 5.9 percent in November, unchanged from the previous month. (See chart 1 and table 2.) The job openingsrate nationally was 4.3 percent in November and 4.5 percent in October. (See table 3.) All data in this release are seasonally adjusted.
The ratio of unemployed persons per job opening in West Virginia was 0. 8 in November. Nationwide, 37 states and the District of Columbia had ratios in August that were lower than the national ratio of 1.1 unemployed persons per job opening; 10 states had ratios that were higher than the national ratio, and 3 states had ratios equal to the national measure. (See map 1.)
Map 1. Number of unemployed persons per job opening by state, November 2025, seasonally adjusted
In November, West Virginia had 26,000 hires and 27,000 separations, compared to 28,000 hires and 27,000 separations in October. (See chart 2.) Over the 12 months ending in November, hires have averaged 28,000 per month and separations have averaged 27,000 per month. These averages include workers who may have been hired and separated more than once during the year.
Among the November separations in West Virginia, 19,000 were quits and 7,000 were layoffs and discharges, compared to 17,000 quits and 8,000 layoffs and discharges in October. (See chart 3.) Over the last 12 months, quits averaged 18,000 per month, ranging from 15,000 to 22,000. Layoffs and discharges have averaged 8,000 per month, ranging from 7,000 to 11,000.
[View charts in the link at bottom]
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Federal Government Shutdown
September 2025 state JOLTS estimates reported in this release include partial data that businesses self-reported electronically during the lapse in appropriations and data collected in November following the shutdown. October 2025 data presented in this release were collected in November following the shutdown, as originally planned. The October 2025 unemployment data are unavailable due to the shutdown, and therefore the number of unemployed persons per job opening is also unavailable.
Additionally, BLS temporarily suspended use of the monthly alignment methodology for October 2025 preliminary estimates; use of this methodology will resume with the publication of October 2025 final estimates. See the State Job Openings and Labor Turnover Technical Note for information on state JOLTS alignment methodology.
Upcoming Change to the JOLTS State Estimates
The national State Job Openings and Labor Turnover news release will move from a monthly news release to an annual news release. The last monthly news release will occur with the December 2025 data published in February 2026. The first annual news release will be in July 2026. Going forward, monthly estimates for the prior calendar year will be published each year along with the annual news release. The annual news release will incorporate benchmark revisions to JOLTS national estimates, updated Current Employment Statistics (CES) employment estimates, and updated Quarterly Census of Employment and Wages (QCEW) data.
State Job Openings and Labor Turnover Survey estimates for December 2025 are scheduled to be released on Thursday, February 19, 2026, at 10:00 a.m. (ET).
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Technical Note
This news release presents statistics from the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS). The JOLTS program provides information on labor demand and turnover. The state estimates produced by JOLTS are model-based, incorporating JOLTS sample, Quarterly Census of Employment and Wages (QCEW), and Current Employment Statistics (CES) estimates. For more information see the JOLTS State Estimates Methodology.
Job Openings. Job openings include all positions that are open on the last business day of the reference month. A job is open only if it meets all three of these conditions:
* A specific position exists and there is work available for that position.
* The job could start within 30 days.
* The employer is actively recruiting workers from outside the establishment to fill the position.
The number of unemployed persons per job opening is a ratio of the level of unemployed persons and the level of job openings. The number of unemployed persons at the national level is an estimate from the Current Population Survey (CPS), while state-level unemployment estimates are modeled by the Local Area Unemployment Statistics (LAUS) program. A ratio of 1.0 means there is a job available for every unemployed person. Lower ratios signal tighter labor markets, where firms have more job openings than there are unemployed persons available to work. Higher ratios indicate there are more unemployed persons competing for each job opening.
Hires. Hires include all additions to the payroll during the entire reference month.
Separations. Separations include all separations from the payroll during the entire reference month and are reported by type of separation: quits, layoffs and discharges, and other separations.
* Quits include employees who left voluntarily, except for retirements or transfers to other locations.
* Layoffs and discharges include involuntary separations initiated by the employer.
* Other separations include retirements, transfers to other locations, separations due to employee disability, and deaths.
Levels and rates of other separations represent a small portion of total separations and are not published with the release of state estimates.
Complete definitions, including exclusions, and additional information about the State JOLTS data presented in this release are available in the State Job Openings and Labor Turnover Technical Note.
Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: 202-691-5200; Telecommunications Relay Service: 7-1-1.
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Table 1. Job openings and labor turnover for West Virginia, seasonally adjusted (in thousands)
Table 2. Job openings and labor turnover rates for West Virginia, seasonally adjusted
Table 3. Job openings and labor turnover rates for the United States, seasonally adjusted
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Original text here: https://www.bls.gov/regions/mid-atlantic/news-release/2026/jobopeningslaborturnover_west-virginia_20260129.htm
Fed: Bankers' Banks and Their Role in the Federal Funds Market
WASHINGTON, Jan. 31 -- The Federal Reserve issued the following Fed Notes article:
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Bankers' Banks and their Role in the Federal Funds Market
Sriya Anbil, Alyssa Anderson, and Benjamin Eyal
1. Introduction
The Global Financial Crisis (GFC) and the Federal Reserve's (Fed) large-scale asset purchases fundamentally reshaped the U.S. monetary policy implementation framework. Before 2008, the Fed operated under a scarce-reserves regime, steering the federal funds rate through daily open market operations. The federal funds market functioned as a large, active interbank market where banks borrowed
... Show Full Article
WASHINGTON, Jan. 31 -- The Federal Reserve issued the following Fed Notes article:
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Bankers' Banks and their Role in the Federal Funds Market
Sriya Anbil, Alyssa Anderson, and Benjamin Eyal
1. Introduction
The Global Financial Crisis (GFC) and the Federal Reserve's (Fed) large-scale asset purchases fundamentally reshaped the U.S. monetary policy implementation framework. Before 2008, the Fed operated under a scarce-reserves regime, steering the federal funds rate through daily open market operations. The federal funds market functioned as a large, active interbank market where banks borrowedand lent reserves overnight to manage end-of-day balances.
Following the GFC, asset purchases expanded reserve balances significantly, shifting the implementation framework to an ample-reserves regime (Ihrig et al. 2020). In this framework, the Fed no longer adjusts reserve quantities daily. Instead, it uses administered rates--most notably the interest on reserve balances (IORB) and the overnight reverse repurchase agreement (ON RRP) rate--to anchor short-term interest rates./1 This approach, formally adopted by the FOMC in January 2019, has delivered stable control of the effective federal funds rate (EFFR) despite historically high levels of reserves (Clouse et al. 2025).
These structural changes transformed the composition of federal funds trading. Today, non-bank lenders--especially Federal Home Loan Banks (FHLBs)--account for over 90 percent of lending (Anderson & Tase 2024, Anderson & Na 2024). Because FHLBs cannot earn IORB, they lend at rates below it, supplying large volumes of funds to banks seeking short-term liquidity. Meanwhile, traditional bank-to-bank trading has declined sharply, with daily interbank volumes reported in the FR 2420 ranging between $2-$6 billion (Figure 1).
Figure 1. Interbank Trading in the Federal Funds Market
Despite their smaller footprint, this residual interbank market provides valuable information about funding and liquidity conditions among regional and community banks. Anderson & Eyal (2025) and Anbil et al. (2025) show that bankers' banks, specialized institutions that manage reserves for community bank customers, are the principal lenders in this market. By intermediating for community banks, bankers' banks play an outsized role in setting interbank lending rates. Importantly, these dynamics are not fully captured by the EFFR, which is calculated as the volume-weighted median lending rate each day and therefore largely reflects trading by non-bank lenders such as FHLBs. Because bankers' banks lend from their own members' pooled reserves, their pricing frequently differs from the EFFR and offers unique insights into liquidity pressures among smaller institutions.
The purpose of this note is to describe what bankers' banks are, explain their role in the federal funds market, and show how their activity provides a window into funding dynamics among community and regional banks.
2. Bankers' Banks
Bankers' banks are specialized financial institutions created to support community and regional banks by providing access to funding, settlement, and liquidity services. They are defined in an interpretation of Regulation D under the Monetary Control Act of 1980, which established criteria to give smaller banks a collective way to compete for funding and financial services./2
Bankers' banks emerged to solve a specific structural problem faced by community banks: their dependence on large correspondent banks for essential services such as payments, check clearing, liquidity management, and federal funds trading. Prior to the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, federal law and state branching restrictions limited large correspondent banks from opening branches across state lines and directly competing with their client community banks. Once those branching restrictions were lifted, smaller community banks found themselves competing for retail deposits with the very large correspondents that had previously provided them services, giving those larger banks significant influence over liquidity flows in the banking system. In addition, many community banks lacked direct access to the Federal Reserve's payment system and the Discount Window, and instead accessed these via their correspondents. Bankers' banks were created to restore independence and improve efficiency for community banks: they offer the same core services as the large correspondent banks, but without competing for retail deposits. This structure allows community banks to pool their resources through the bankers' bank, achieve greater scale, and access the federal funds market and Federal Reserve services more directly and cost-effectively. At year-end 2024, there were 12 active bankers' banks in the United States, with combined assets of approximately $10 billion. Organized and owned primarily by community banks, their potential reach is substantial: for example, the Independent Bankers' Bank (TIB) advertises that one in three community banks rely on its services./3
Bankers' banks typically lend to other depository institutions and their loan products reflect interbank or liquidity support rather than retail lending. They offer federal funds or short-term interbank loans, lines of credit, some mortgage products, or act as an agent, lending pooled customer reserves to approved borrowers under policies established by its management.
Because bankers' banks lend their customers' excess reserves rather than their own, they become the marginal lender in federal funds. This distinction is important for understanding their role in short-term funding markets. Their activity provides smaller community banks with access to markets they could not otherwise reach and, at the same time, offers a window into the liquidity conditions faced by these institutions. By observing how bankers' banks manage and price their lending, we gain valuable insight into reserve dynamics among community banks--information that is not always captured by aggregate, summary measures such as the EFFR.
Customers of bankers' banks are typically members of the Federal Home Loan Bank (FHLB) system and therefore have the option of borrowing through FHLB advances. However, several factors can make a federal funds loan from a bankers' bank more attractive than an FHLB advance. First, FHLB advances must be fully collateralized, typically with mortgage-related assets that are subject to substantial haircuts. Moreover, FHLBs are constrained by regulatory counterparty exposure limits, meaning that a borrower can effectively reach a de facto credit cap. Timing also plays an important role. FHLBs prefer advance requests to be submitted early in the business day--typically before 10 a.m.--to facilitate their own liquidity management. Many FHLBs impose rate penalties for later requests./4 Bankers' banks, by contrast, tend to lend later in the day--after 11 a.m. ET--when FHLB advances are relatively less attractively priced. Indeed, we find that 78 percent of bankers' bank federal funds volume occurs after 11 a.m. ET (Figure 2).
Figure 2. Timing of Bankers' Bank Loans
2.1. Role in the Federal Funds Market
To study the activity of bankers' banks in the federal funds market, we identify overnight federal funds loans made over the Fedwire Funds Service in which a bankers' bank was the lender between October 2015 and August 2025. We use the algorithm of Furfine (1999), refined following Anderson & Eyal (2025), to identify overnight loans and isolate those that are federal funds transactions using the FR 2420 Report of Selected Money Market Rates. This procedure yields a comprehensive set of loans between bankers' banks and their client institutions./5
The twelve active bankers' banks facilitated an average of $2.5 billion in daily federal funds lending. Although this volume is small relative to the overall size of the federal funds market (Figure 3) it plays a disproportionate role for community and regional banks that rely on bankers' banks for market access. The rates charged by bankers' banks therefore provide valuable information about funding conditions among smaller institutions and their demand for reserves. Figure 4 compares the effective federal funds rate (EFFR) with the volume-weighted median rate of transactions where bankers' banks are lenders, or what we call the bankers' federal funds rate (BFFR). We compute the BFFR daily using all transactions between bankers' banks and domestic bank borrowers.
Figure 3. Interbank Trading and Aggregate Trading in the Federal Funds Market
Figure 4. Rate Spreads to IORB
From Figure 4, we observe that on September 17, 2019--a day widely viewed as marking the onset of "less than ample'' reserves and associated with a sharp spike in repo rates--the BFFR showed little movement even as the EFFR briefly traded above the Federal Reserve's target range. Bankers' banks and their clients did not appear to experience liquidity constraints, suggesting that reserves were ample among these institutions.
By contrast, in March 2023, the EFFR traded about 7 basis points below the Interest on Reserve Balances (IORB) rate, while the BFFR reached historic highs after having risen for several months with a corresponding decline in reserves held at bankers' banks (Figure 5). This pattern provides evidence that the BFFR captures tightening funding conditions among smaller banks. The BFFR declined only after the introduction of the Bank Term Funding Program./6
Figure 5. Aggregate and Bankers' Bank Reserve Balances
Figure 6 plots the equilibrium relationship between the BFFR and the ratio of aggregate reserve balances held by bankers' banks to the total assets of small banks./7 The figure shows that lending rates by bankers' banks increase as their reserve balances decline, indicating that their liquidity positions influenced pricing in the federal funds market. In contrast, Figure 7 plots the equilibrium relationship between the EFFR and aggregate reserve balances relative to total banking assets. The flatter slope of this curve suggests that, to date, the EFFR is largely unresponsive to the aggregate level of reserves--unlike the BFFR.
Figure 6. Equilibrium Rate Curve for Bankers' Banks
Figure 7. Aggregate Equilibrium Rate Curve
Taken together, these findings suggest that the BFFR provides a cleaner and more direct measure of funding conditions among smaller banks than the EFFR. Because most indicators of short-term funding stress are intertwined with repo market dynamics, the lending rates of bankers' banks could offer a more reliable signal of reserve demand in segments of the banking system less active in repo markets.
3. References
Anbil, S., Infante, S. & Senyuz, Z. (2025), 'A tale of demand and supply for central bank reserves', Working Paper. URL: https://www.dropbox.com/scl/fi/yzvecuqrz5a5svyxcb7jg/AnbilInfanteSenyuz_DemandSupplyFedFundsMkt Mar2025.pdf ?rlkey=q41gqx9ix5qxt5nayfect1c0tst=gpdkfshedl=0
Anderson, A. & Eyal, B. (2025), 'Relationship dynamics in the federal funds market', Working Paper.
Anderson, A. & Na, D. (2024), 'The recent evolution of the federal funds market and its dynamics during reductions of the federal reserve's balance sheet'. FEDS Notes.
Anderson, A. & Tase, M. (2024), 'Lcr premium in the federal funds market', SSRN Working Paper .
Clouse, J. A., Infante, S. & Senyuz, Z. (2025), 'Market-based indicators on the road to ample reserves'. FEDS Notes.
Furfine, C. H. (1999), 'The microstructure of the federal funds market', Financial Markets, Institutions & Instruments 8(5), 24-44. URL: https://onlinelibrary.wiley.com/doi/abs/10.1111/1468-0416.00031
Ihrig, J., Senyuz, Z. & Weinbach, G. C. (2020), 'The Fed's "ample-reserves" approach to implementing monetary policy"', Finance and Economics Discussion Series 2020-022. Washington: Board of Governors of the Federal Reserve System.
4. Appendix Document
Figure A1. Appendix Document
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1./ The IORB rate is the interest the Fed pays banks on reserves held at the Fed. The ON RRP rate applies to overnight reverse repurchase agreements offered to non-bank institutions and serves as a floor under short-term money market rates. Return to text
2./ 12 CFR 204.121. Return to text
3./ Website of the Independent Bankers' Bank. Return to text
4./ For instance, FHLB Dallas notes in its Advance Products Guide (https://www.fhlb.com/getmedia/230e2ba9-fdc2-4236-b343-8db36822b873/Advances-Products-Guide.pdf) that requests made after 10 a.m. CT are subject to an additional 5 basis points, while FHLB Chicago offers an "early-bird discount" of 5 basis points for advances placed before 10 a.m. Return to text
5./ More information about the FR 2420 Report of Selected Money Market Rates can be found here. Return to text
6./ First Republic, Silicon Valley Bank, and Signature Bank were approved as fed funds borrowers for certain bankers' banks. See CBB (https://cbbonline.com/mp-files/exhibit-a-march-2021.pdf) and FNBB (https://fluxconsole.com/files/item/544/78830/Agency/%20Update/%20Q1-20/%20Exhiibit/%20A.pdf). Return to text
7./ Small banks are defined as all domestically chartered banks outside the largest 25. Return to text
Please cite this note as:
Anbil, Sriya, Alyssa Anderson, and Benjamin Eyal (2026). "Bankers' Banks and their Role in the Federal Funds Market," FEDS Notes. Washington: Board of Governors of the Federal Reserve System, January 30, 2026, https://doi.org/10.17016/2380-7172.3969.
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Disclaimer: FEDS Notes are articles in which Board staff offer their own views and present analysis on a range of topics in economics and finance. These articles are shorter and less technically oriented than FEDS Working Papers and IFDP papers.
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Original text here: https://www.federalreserve.gov/econres/notes/feds-notes/bankers-banks-and-their-role-in-the-federal-funds-market-20260130.html
