PPI CALLS FOR THE FEDERAL RESERVE TO STOP HIGHER BANKING FEES

The following information was released by the Progressive Policy Institute (PPI):

Paul Weinstein Jr.

WASHINGTON (June 5, 2026) This week, the Progressive Policy Institute (PPI) filed an amicus brief in the case Linney's Pizza, LLC v. Board of Governors of the Federal Reserve System at the U.S. Court of Appeals for the Sixth Circuit.

Paul Weinstein Jr., Senior Fellow at PPI, stated that "Attempts to force the Fed to further reduce interchange fees, while well-meaning, would, based on recent economic studies, provide no financial relief to consumers and instead could lead to higher banking fees.

Last fall, PPI released a study by former Undersecretary for Commerce Robert Shapiro that showed the Federal Reserve's cap on debit card interchange fees failed to deliver promised savings for consumers, and instead reduced access to free checking, led to higher maintenance and overdraft fees, and pushed billions of dollars in spending toward higher fee credit cards.