Seal of the Federal Reserve System
Flag of the Federal Reserve System
|Headquarters||Eccles Building, Washington, D.C., U.S.|
|Established||December 23, 1913|
|Ownership||The US government |
|Governing body||Board of Governors|
|Vice Chair||Richard Clarida|
|Central bank of||United States|
|Currency||United States dollar|
USD (ISO 4217)
|Interest rate target||0% to 0.25%|
|Interest on reserves||0.10%|
|Interest paid on excess reserves?||Yes|
|Jurisdiction||Federal government of the United States|
The Federal Reserve initially authorized up to five "small-value offerings are designed to ensure the
The Federal Reserve initially authorized up to five "small-value offerings are designed to ensure the effectiveness of TDF operations and to provide eligible institutions with an opportunity to gain familiarity with term deposit procedures." After three of the offering auctions were successfully completed, it was announced that small-value auctions would continue on an ongoing basis.
The Term De
The Term Deposit Facility is essentially a tool available to reverse the efforts that have been employed to provide liquidity to the financial markets and to reduce the amount of capital available to the economy. As stated in Bloomberg News:
Policy makers led by Chairman Ben S. Bernanke are preparing for the day when they will have to start siphoning off more than $1 trillion in excess reserves from the banking system to contain inflation. The Fed is charting an eventual return to normal monetary policy, even as a weakening near-term outlook has raised the possibility it may expand its balance sheet.
Chairman Ben S. Bernanke, testifying before House Committee on Financial Services, described the Term
Chairman Ben S. Bernanke, testifying before House Committee on Financial Services, described the Term Deposit Facility and other facilities to Congress in the following terms:
The Asset Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (ABCPMMMFLF) was also called the AMLF. The Facility began operations on September 22, 2008, and was closed on February 1, 2010.
All U.S. depository institutions, bank holding companies (parent companies or U.S. broker-dealer affiliates), or U.S. branches and agencies of foreign banks were eligible to borrow under this facility pursuant to the discretion of the FRBB.
Collateral eligible for pledge under the Facility was required to meet the following criteria: