Fed raises primary and secondary credit rates to 4.00% and 4.50%

The Board of Governors of the Federal Reserve System issued a final rule amending 12 CFR part 201 (Regulation A) to reflect a 0.25 percentage point increase in the primary credit rate, raising it from 3.75 percent to 4.00 percent. The secondary credit rate, set by formula at the primary rate plus 50 basis points, rose concurrently from 4.25 percent to 4.50 percent.

The rate changes became applicable on September 17, 2026, following the Board's vote on September 16, 2026. The rule itself is effective September 30, 2026. The amendment is identified as Docket No. R-1901 and RIN 7100-AH31.

The Board linked the primary credit rate adjustment to the Federal Open Market Committee's target range shift for the federal funds rate, which moved from a target range of 3 1/2 percent to 3 3/4 percent to a target range of 3 3/4 percent to 4 percent on September 16, 2026. The Board determined that notice, public comment, and delayed-effective-date requirements of the Administrative Procedure Act do not apply because the amendment concerns a matter relating to loans, and good cause exists to dispense with those procedures.

Section 201.51 now reads: primary credit at 4.00 percent and secondary credit at 4.50 percent at each Federal Reserve Bank. The amendment contains no new paperwork requirements and is not subject to the Regulatory Flexibility Act or the Paperwork Reduction Act.