Federal Reserve Board Vice Chair Philip N. Jefferson reviewed progress in modernizing the discount window and its role in supporting Treasury market functioning in remarks at the 2026 U.S. Treasury Market Conference. The work centers on streamlining business processes, expanding automation and improving coordination with the Federal Home Loan Banks to give banks faster, more reliable access to liquidity. Recent changes simplified how eligible institutions pledge loans while retaining possession of the collateral, including through streamlined forms, faster enrollment and automated pledged loan lists. Discount Window Direct, launched in 2024, now handles more than 60% of discount window loan requests. Jefferson also emphasized that banks can quickly pledge Treasury securities and receive same-day loans, reducing forced-sale risks during market stress and easing pressures in repo and federal funds markets.
2026-09-22Federal Reserve Board
US Federal Reserve Board Vice Chair outlines discount window modernization and support for Treasury market functioning
Federal Reserve Board Vice Chair Philip N. Jefferson outlined efforts to make discount window borrowing faster through streamlined collateral processes, automation and closer coordination with the Federal Home Loan Banks. More than 60% of loan requests now use Discount Window Direct. Rapid same-day lending against Treasury securities can reduce forced sales and support broader funding market functioning.