Federal Reserve System Issues Rule to Decrease Interest Rate on Reserve Balances
December 19, 2025
December 19, 2025
WASHINGTON, Dec. 19 (TNSFR) -- The Federal Reserve System issued a rule to decrease the interest rate paid on balances maintained at reserve banks by eligible institutions. The rate, known as interest on reserve balances (IORB) fell from 3.9 percent to 3.65 percent.
The change was applicable Dec. 11, 2025, following a decision by the Federal Open Market Committee to lower the target range for the federal funds rate to a span of 3 1/2 to 3 3/4 percent. The Federal Reserve System inte . . .
The change was applicable Dec. 11, 2025, following a decision by the Federal Open Market Committee to lower the target range for the federal funds rate to a span of 3 1/2 to 3 3/4 percent. The Federal Reserve System inte . . .