Capital Briefs: 6.4% Spending Hike in 2-Year Fed Budget

The Federal Reserve Board adopted a two-year, $353 million budget Monday that includes $4.3 million for a consumer finance study and $3 million for a small-business finance study.

Spending would rise 6.4%. The budget growth will pay for employee merit increases and a projected climb in the cost of worker benefits, the Fed said.

The Fed predicted it would offset some of the costs by reducing its work force by 60 positions, to 1,670. The agency also said it would reorganize its administrative and supervision divisions.

This is the agency's first two-year budget.

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