The Federal Reserve yesterday appealed Judge Richard Leon’s ruling overturning its debit interchange rule. The Fed during a hearing also requested that Leon allow the current rule to remain in place pending the appeal and said that it did not intend to issue an interim rule reducing the interchange fee cap.
Representatives of the retail industry, which opposes the Fed’s interchange rule, indicated at the hearing that they would also support maintaining the current rule pending appeal. Leon said that he would rule on the matter after both sides have provided him with further information.
“The Federal Reserve’s decision to appeal is the right thing to do for consumers who value debit cards and the financial institutions that serve them,” said ABA President and CEO Frank Keating. “We’re encouraged that all parties have asked for a stay and will seek an expedited appeal, which would avoid the market disruption and consumer harm that other alternatives would cause.”