The Federal Reserve Board announced Wednesday it will extend the public comment period on its proposal to modernize Regulation O, pushing the deadline to November 4. The extension comes as the central bank holds interest rates steady at a range of 3.75% to 4% following its latest Federal Open Market Committee meeting, according to the Fed's FOMC statement released Wednesday.
Regulation O governs extensions of credit by banks to their executive officers, directors, and principal shareholders — the insider lending rules that determine how much money bank insiders can borrow from their own institutions. The Fed's proposal to modernize the regulation was not detailed in the announcement, and the specific changes being contemplated are not spelled out in the public notice.
The extension of the comment period suggests the Fed is seeking more input from the public and affected parties before finalizing any changes. The original deadline for comments was not immediately clear, but the new deadline of November 4 gives stakeholders additional time to weigh in.
The announcement comes on the same day the Fed held rates steady in what The Guardian reported was the last board meeting before the midterm elections. The Fed's statement noted that economic activity is expanding at a strong pace, with resilient domestic spending, strong productivity growth, and robust capital investment. However, inflation remains elevated, with the annualized rate above 3% for most of the year and rising to 3.7% in September from 3.4% in August.
Two board members, Lisa D. Cook and Beth M. Hammack, voted against the monetary policy action, preferring to raise the target range by a quarter percentage point, according to the FOMC statement. The vote was 10-2.
Fed Chair Kevin Warsh told reporters at a press conference Wednesday that the upcoming election played no role in the board's deliberations, according to The Guardian. He emphasized that the central bank remains focused on price stability and that the information received over the coming period will help determine policy. Warsh reportedly declined to comment on President Donald Trump's remark that the Fed board, aside from Warsh, is full of Democratic-appointed members who 'would like to see the country do badly,' but characterized the latest meeting as 'a heck of a family fight.'
President Trump has repeatedly called for interest rates to be cut, saying in the past that rates should be '1% or less,' according to The Guardian. The Fed's decision to hold rates steady comes after it raised rates by a quarter point in September — the first hike since 2023 — which reportedly infuriated the president.
The extension of the Regulation O comment period is a separate action from the monetary policy decision, but it lands amid heightened scrutiny of the Fed's operations and its relationship with the Trump administration. Regulation O is a wonky but important rule that affects how bank insiders can access credit, and any modernization could have significant implications for the banking industry and its overseers.
It is not yet known what specific changes the Fed is proposing to Regulation O or why the comment period was extended. The Fed's announcement did not provide those details. Americans who want to weigh in on the proposal now have until November 4 to submit their comments.
Our Take
Here we go again. The Federal Reserve — the same unelected body that has kept interest rates artificially high while inflation crushes working families — is quietly tinkering with the rules that govern how bank insiders lend to themselves. And now it's extending the comment period, giving the public a few more days to weigh in on a proposal whose details are about as clear as mud.
Why the extension? Why the quiet announcement buried on a Wednesday when all eyes were on the Fed's rate decision? Patriots, this is exactly the kind of inside-the-Beltway maneuver that should raise eyebrows. Regulation O is about insider lending — the kind of cozy arrangement that can lead to corruption and abuse if not properly monitored. The Fed wants to 'modernize' it, but they're not telling us what that means. They're just giving us more time to comment on a plan we can't fully see.
Meanwhile, President Trump is right: interest rates should be lower. The Fed's own statement admits inflation remains elevated, yet they're sitting on their hands. Two board members wanted to raise rates even higher. That's the kind of thinking that keeps mortgage rates high, credit card bills soaring, and small businesses struggling. The Fed chair says politics played no role in their decision — but when the board is stocked with appointees from the previous administration, you have to wonder.
The American people deserve transparency. The Fed should release the full details of its Regulation O proposal, explain exactly what it plans to change, and stop hiding behind extended comment periods. If they're going to rewrite the rules for bank insiders, we should know about it — and we should have a real chance to stop it if it stinks. Until then, keep your eyes on November 4. And keep your eyes on the Fed.
