U.S. bank mergers will face steeper regulatory hurdles under new guidelines that the Federal Deposit Insurance Corp. voted to adopt on Tuesday.

The FDIC’s plan, the latest in the Biden administration’s effort to clamp down on consolidation by financial firms, would add layers of scrutiny that more directly take into account the effects on financial stability, competition, communities and customers. The agency’s board voted 3-2 in favor during a meeting Tuesday.

For a deal to win approval, the FDIC would expect the resulting firm to “better meet the convenience and needs of the community to be served than would occur absent the merger,” according to a statement from the agency. Combinations that lead to a firm with more than $100 billion in assets would face a tougher process as the agency assesses potential risks to the financial system.

The result would be a balancing act, with officials getting authority to evaluate and perhaps reject any merger transaction that fails on one or more of the criteria.

Martin Gruenberg, the FDIC chair, called the change “a significant milestone in the FDIC’s efforts to update, strengthen and clarify its approach to bank mergers.” Both Republican board members voted against the plan, saying it will be too burdensome on the industry.

Alaska-Hawaiian merger cleared

The U.S. Department of Transportation is giving a green light to the merger of Alaska Air Group and Hawaiian Holdings after the carriers agreed to institute new consumer protections, lifting the last hurdle to close the $1.9 billion deal.

Under the terms of the agreement, Alaska and Hawaiian must protect the value of loyalty program rewards, maintain existing service on key routes and preserve support for rural service, the Transportation Department said Tuesday in a statement. The companies also must ensure competitive access at the Honolulu hub airport.

“This is the first time the U.S. Department of Transportation has required airlines to agree to binding, enforceable protections as a precondition before we would allow a merger to move forward,” Transportation Secretary Pete Buttigieg said on a call with reporters.

The DOT decision allows Alaska to buy Hawaiian shares and start the process of closing, the agency said.

Fed cuts key rate by a half-point

The Federal Reserve on Wednesday cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates helped tame inflation but that also made borrowing painfully expensive for American consumers.

The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market, which has shown clear signs of slowing. Coming just weeks before the presidential election, the Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote.

The central bank’s action lowered its key rate to roughly 4.8%, down from a two-decade high of 5.3%, where it had stood for 14 months as it struggled to curb the worst inflation streak in four decades.

Wall Street romped to records Thursday as a delayed jubilation swept markets worldwide following the Federal Reserve’s big cut to interest rates.

The S&P 500 jumped 1.7% for one of its best days of the year and topped its last all-time high set in July. The Dow Jones Industrial Average leaped 1.3%, to beat its own record set on Monday, and the Nasdaq composite led the market with a 2.5% spurt.

Amazon boosts pay to $22 hourly

Amazon.com is raising the pay of its hourly warehouse workers by at least $1.50 an hour and adding Prime memberships to their benefits.

The raises will take effect this month for the hundreds of thousands of employees working for Amazon’s sprawling U.S. logistics operation, boosting the average base wage to more than $22 an hour, the company said in a blog post on Wednesday. The pay bump comes as inflation, though well below its post-pandemic highs, continues to eat away at the value of workers’ paychecks.

Employees will start receiving Prime, Amazon’s speedy shipping and video subscription service, as part of their compensation beginning early next year, the company said.

Compiled from Associated Press and Bloomberg reports.