Under strong pressure from the banking industry and even Members of Congress such as Sen. Mark Warner (D-VA), the Federal Reserve is seeking comments on how to address frictions and inefficiencies that slow or even stall discount-window and intraday liquidity flows from the central bank. The request for input (RFI) takes no stand on possible changes either to the discount window or to daylight-overdraft processes. Indeed, the RFI confines its preamble to descriptions of how the window and intraday credit work rather than highlighting any areas of particular concern. The RFI is also a cautious initial step with an extended comment period (see below), signaling that any procedural improvements are unlikely until at least mid-2025, with delays beyond that likely if the Fed decides to seek comment on specific options….
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