Fed mulls more clarity on policy

Fed mulls more clarity on policy

WASHINGTON

Federal Reserve policy-makers this month discussed how they could give businesses and investors more information about what might trigger an increase in interest rates, according to minutes of the Nov. 1-2 meeting.

But the Fed held off making any changes.

A panel led by Vice Chairwoman Janet Yellen is exploring ways to provide more information on future central- bank moves. More clarity on interest-rate policy could help reassure investors and businesses that rates will stay low.

At its August meeting, the Fed said it planned to keep short-term rates near zero until at least mid-2013, as long as economic growth remained weak.

Retail groups sue over debit-card fees

NEW YORK

A coalition of retail groups sued the Federal Reserve on Tuesday, claiming the regulator ignored the law by setting too high a cap on the fees that banks can charge merchants for handling debit- card purchases.

The National Retail Federation and other groups claimed in U.S. District Court in Washington, D.C., that the Fed buckled under pressure from bank lobbyists when it set the cap at an average of about 24 cents per transaction in late June.

The previously unregulated fees used to average around 44 cents.

The cap, which took effect Oct. 1, initially was proposed at 12 cents.

American Bankers Association CEO Frank Keating accused retailers of “seeking more profits from government price controls” by filing the suit and maintained that retailers have not passed on the savings that resulted from the cap to their customers.

A Fed spokeswoman said the regulator is aware of the lawsuit and will review it.

Associated Press