Clarity needed from Fed and Congress on end of penny production
The end of U.S. penny production is bringing unexpected challenges for credit unions. Bringing the unified voice of the credit union industry directly to policymakers, America’s Credit Unions, the American Association of Credit Union Leagues (AACUL), and all state leagues wrote Federal Reserve Governor Christopher Waller Thursday to share concerns raised after the U.S. ceased production on pennies last month.
“The end of penny production, shrinking inventories at Federal Reserve distribution sites, and the lack of a national rounding standard are creating uncertainty for credit unions and other financial institutions,” the organizations wrote.
America’s Credit Unions, AACUL, and leagues request:
- The Federal Reserve maintains access to coin depots, provides transparent inventory updates, and prevents regional disparities as penny supplies shrink;
- Clear, coordinated guidance on acceptable rounding approaches and what to do when exact change is not available:
- The Federal Reserve collaborates with the NCUA and other regulators to provide timely interim guidance that promotes consistent implementation and reduces compliance uncertainty; and
- Congress sets a uniform national rounding standard to prevent inconsistent state approaches. The Federal Reserve should convey to Congress why a clear nationwide framework would help credit unions and consumers. Pending legislation, including the bipartisan Common Cents Act, would accomplish this.