Keefe Bruyette says Fed’s lowered fee caps ‘better than feared’

Keefe Bruyette analyst Sanjay Sakhrani says the Federal Reserve Board this afternoon released a proposal outlining revisions to the interchange fee cap in Regulation II, or debit card interchange fees and routing. The analyst thinks the lowered fee caps are better than feared. Additionally, the Fed is proposing updates to the interchange fee caps every two years based on the data submitted to the Fed, the analyst tells investors in a research note. The firm notes the proposal does not affect exempt issuer.