Fed Moves to Overhaul Lending Rules for Poorer Communities

WASHINGTON—The Federal Reserve, splitting from other U.S. bank regulators, took an initial step to rewrite rules for hundreds of billions of dollars in lending and investment in lower-income neighborhoods.

Fed governors voted 5-0 to seek public comment on a broad overhaul to its rules for the Community Reinvestment Act, a 1977 law aimed at ending “redlining”— banks’ practice of avoiding lending in certain areas, often minority neighborhoods.

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