The Federal Reserve Board has updated its Regulation A to decrease the interest rates for loans given to banks. The primary credit rate has been lowered from 4.75% to 4.50%, and the secondary credit rate from 5.25% to 5.00%. These changes reflect adjustments in line with the Federal Open Market Committee's decision on the target federal funds rate. The Board has bypassed the usual procedures for public notice and comment because the changes are deemed urgent and relate to loans.
Simple Explanation
The Federal Reserve decided to give banks loans at cheaper interest rates by lowering two rates, which helps banks borrow money more easily when they need it. They did this quickly because they thought it was very important to help the economy, so they didn't wait to ask people what they thought first.