WASHINGTON—In 60 days the Federal reserve will offer additional insights into its reasoning for calculating transaction-monitoring costs in the base interchange fee calculation under its rule implementing the Durbin Amendment of the Dodd-Frank Act.
The Fed agreed to the disclosure during a status conference held Monday in the U.S Court of Appeals. The hearing addressed this final remaining issue from the merchants’ suit against the Fed over its debit interchange rule, NAFCU reported.
NAFCU stated that counsel for the Federal Reserve argued the court should allow the Fed to issue its guidance without the court's ongoing supervision since the issue was directly remanded to the Fed by the U.S. Court of Appeals. Leon said he would issue an order Monday to keep the case within the jurisdiction of the district court until the Fed releases its formal guidance.
Leon expressed skepticism that the Fed would issue guidance “that everyone could be happy with,” NAFCU reported, saying Leon stated he is not sure what action, if any, will need to be taken after the Fed’s reasoning is issued.