Federal Reserve's Jefferson discusses discount window modernization at Treasury Market Conference

Federal Reserve: The Federal Reserve is the central banking system of the United States responsible for conducting monetary policy, supervising banks, and maintaining financial stability. In this speech, Vice Chair Jefferson highlighted the System's ongoing efforts to modernize discount window operations through business process improvements, automation enhancements, and better coordination with Federal Home Loan Banks. These initiatives aim to make liquidity access faster and more efficient for banks while supporting broader Treasury market functioning. Philip N. Jefferson: Philip N. Jefferson serves as Vice Chair of the Board of Governors of the Federal Reserve System and oversees the Board's work on discount window policy as Oversight Governor for the Division of Monetary Affairs. On September 22, 2026, he delivered remarks at the U.S. Treasury Market Conference discussing progress in modernizing the discount window and its implications for Treasury market resilience. Jefferson emphasized Systemwide collaboration and the importance of ongoing enhancements to support banking system stability. Federal Reserve Bank of New York: The Federal Reserve Bank of New York is one of the twelve regional Reserve Banks that operates the discount window in its District and participates in Systemwide policy and operational coordination. It hosted the 2026 U.S. Treasury Market Conference where the remarks on discount window modernization were delivered. The New York Fed works closely with the Board of Governors on discount window matters as part of its role in the Federal Reserve System. Treasury Market Support: The discount window accepts Treasury securities as collateral with same-day value, helping banks access liquidity quickly without forced sales during market stress and complementing standing repo operations in money markets. Discount Window Modernization: The Federal Reserve has implemented improvements including simplified collateral pledging processes, the Discount Window Direct online portal for loan requests, and enhanced interoperability with Federal Home Loan Banks to reduce operational frictions for banks.