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Federal Reserve Financial Services to Take New Actions to Support Penny Circulation

BY Business Wire | ECONOMIC | 01/08/26 12:23 PM EST

CHICAGO--(BUSINESS WIRE)-- Federal Reserve Financial Services (FRFS) today announced new actions to better support the circulation of pennies for commercial activity. Beginning on Jan. 14, the Federal Reserve will resume accepting pennies from banks and credit unions at commercial coin distribution locations providing services under arrangements with the Federal Reserve that were previously suspended.

While the Federal Reserve continues to support penny deposits, local inventory constraints had limited that activity at some locations. Our monitoring of the flow of penny deposits from financial institutions as these changes take effect will determine whether some subsequent expansion of ordering options for pennies is feasible, given that penny production has ended.

The Federal Reserve?s role for coin is limited to distribution to banks and credit unions on behalf of the U.S. Mint, which is the nation?s issuing authority for coins. The Federal Reserve does not provide coins directly to businesses or consumers.

About FRFS

FRFS provides payment services and seeks to foster the stability, integrity and efficiency of the nation?s monetary, financial and payment systems. It offers a comprehensive suite of payment and information services to financial institutions. Visit FRBservices.org? for additional information.

Source: Federal Reserve Financial Services

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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