Fed Will Release Its Own Anti-Redlining Rewrite, Powell Says

The Federal Reserve will move forward with its own proposal for updating an anti-redlining law after bowing out of a rulemaking effort led by a fellow banking regulator, Chairman Jerome Powell said Wednesday.

Powell told lawmakers that the central bank has done “a lot of great work” in rethinking how it would evaluate banks’ lending and investment in low- to moderate-income communities under the Community Reinvestment Act. The Fed wasn’t part of a May 20 final rule from the Office of the Comptroller of the Currency that updated the 1977 law.

“We’re not going to let that work go to ...