Overview
Title
Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB
Agencies
ELI5 AI
The people at the Federal Reserve are continuing a study to see how people pay for things, like using cash or cards, for three more years. They want to make sure they understand how everyone makes payments without changing anything they did before.
Summary AI
The Board of Governors of the Federal Reserve System has decided to continue the Federal Reserve Payments Study (FR 3066) for another three years without making any changes. This study helps estimate the number and value of cash and non-cash payments in the U.S. from different sources. The Board received a supportive comment from an industry association and plans to publish results in stages to ensure quality and reliability. The detailed results help policymakers, the industry, and the public understand payment activities in the country.
Abstract
The Board of Governors of the Federal Reserve System (Board) is adopting a proposal to extend for three years, without revision, the Federal Reserve Payments Study (FR 3066; OMB No. 7100-0351).
Keywords AI
Sources
AnalysisAI
The recently published document in the Federal Register outlines the Board of Governors of the Federal Reserve System's decision to extend the Federal Reserve Payments Study (FR 3066) for an additional three years without any changes. This study plays a crucial role in assessing the total number and value of payments, both cash and non-cash, conducted by entities within the United States. By participating in this study, stakeholders and participants contribute valuable data that informs countless academics, industry experts, and policymakers about payment trends in the country.
General Summary
The document provides an overview of the decision made by the Federal Reserve to continue the Federal Reserve Payments Study. The study is vital for generating aggregate estimates on various payment activities across the country, encompassing data from financial institutions and payment processors. This information is essential for analyzing economic trends and guiding financial policies. While the study will continue as planned, the Board pledges to release the data findings in phases, which allows time for careful review to maintain the accuracy and reliability of details presented.
Significant Issues and Concerns
Several concerns arise from the document regarding how thorough and accessible the details are:
Financial Implications: The document fails to specify how the estimated annual burden hours translate into financial costs, an absence that creates ambiguity regarding the economic impact on participants.
Feedback Influence: While acknowledging support from a public comment, the document does not detail how such feedback will affect future updates, leaving one to question how public input will be integrated.
Data Release Timeliness: Information regarding specific timelines for the data releases is absent, leading to possible uncertainties about when stakeholders can expect updates.
Technical Jargon: The document employs industry-specific terms like "topline estimates," which might confuse readers who lack a background in economics or finance.
Justification of Burden Hours: There is no insight into how the estimated response times (22 hours for FR 3066a and 8 hours for FR 3066b) were calculated, raising doubts about their validity.
Impact on the Public
For the general public, the continuation of this study means sustained access to information that tracks changes in payment behavior, potentially affecting decisions by consumers and policymakers. Understanding these patterns is crucial for both making informed personal financial decisions and shaping public policy that influences everyday transactions.
Impact on Stakeholders
Specific stakeholders, including financial institutions and payment processors, might experience a mixed impact:
Positive Impact: These organizations can benefit from the detailed, aggregated data to benchmark and compare their performance within the broader market. They may also use insights derived from these findings for strategic planning.
Negative Impact: The requirement of time and resources to comply with study participation might be burdensome. Without clarity on the financial implications of annual burden hours, organizations might struggle to allocate resources efficiently.
In conclusion, while the extension of the Federal Reserve Payments Study stands as a crucial mechanism for understanding the payment ecosystem, there are several areas where improvements in communication and explanation would benefit all involved parties. By addressing these gaps, the Board can enhance engagement, transparency, and the overall utility of the data produced for industry participants and the public.
Issues
• The document does not provide detailed information on how the estimated annual burden hours (12,646 hours) translate into monetary costs, leading to potential ambiguity regarding financial implications.
• The document lacks specific information on how feedback from public comments, other than its supportive nature, will directly influence future data releases or processes, leaving a gap in understanding responsive adjustments.
• There is a lack of clarity regarding the specific timelines and milestones for the release of data, which could lead to ambiguity about when stakeholders can expect detailed information.
• The document uses technical terminology such as 'topline estimates' and 'triennial releases' without providing definitions or explanations, which might make it difficult for lay readers to fully understand.
• The estimated hours per response (FR 3066a, 22; FR 3066b, 8) do not include a rationale or methodology for these estimates, potentially raising questions about their accuracy or justification.