To All Depository Institutions in the Second Federal Reserve District:
The Board of Governors of the Federal Reserve System today approved action by the board of directors of the Federal Reserve Bank of New York increasing the discount rate at this Bank from 5½ percent to 6 percent, effective immediately.
On May 16 the Federal Open Market Committee raised its target for the federal funds rate to 6½ percent, and the Board of Governors approved an increase in the discount rate to 6 percent at the Federal Reserve Banks of Boston, Cleveland, Richmond, and San Francisco. The discount rate is the rate charged depository institutions when they borrow short-term adjustment credit from their district Federal Reserve Banks. The May 16 announcement is available on the Board's website.
A change in the discount rate at each Reserve Bank becomes effective when voted upon by the boards of directors of those Banks and approved by the Board of Governors.