What is the process through which the Federal Reserve Banks review their prices every year?
All Federal Reserve fees are reviewed annually and revised, if necessary. The annual review takes place during the fourth quarter of the year. Each Reserve Bank forecasts its costs and volumes for each priced service for the upcoming year. Included in the cost estimate are all direct, support, overhead, and float costs that are to be allocated to each priced service. The cost and volume estimates are based on a combination of historical experience and projections. At the same time, the Federal Reserve calculates a proposed PSAF for the year. Aggregate cost and volume estimates for nationally priced services are based on estimates made by the individual Reserve Banks. The proposed Reserve Bank fees are reviewed by the System’s Financial Services Policy Committee, the staff of the Board of Governors, and the Committee on Federal Reserve Bank Affairs. The purpose of the review is to ensure that the cost and volume estimates are reasonable, that the PSAF calculation is consistent with Syst
