(Reuters) - Three regional Federal Reserve banks in September pressed again for an increase in the Fed's emergency lending rate ahead of last month's Fed policy meeting, according to minutes released on Tuesday.
Directors of the Dallas, Kansas City and Philadelphia Feds asked that the discount rate be raised by 25 basis points, to 1.0 percent, to reflect what they saw as improvement in the U.S. economy.
The heads of those three banks are among the more hawkish on inflation at the U.S. central bank, and have pushed the Fed to increase interest rates more aggressively.
The discount rate is what the Fed charges banks who turn to it for funds when they are unable to raise them in the private market.
The fed funds rate, which has been near zero since 2008, governs the cost of overnight borrowing between banks and is the Fed's main monetary policy lever.
The other nine Fed regional bank heads agreed to keep the discount rate at its current 0.75 percent.
"Federal Reserve Bank directors generally anticipated continued moderate economic growth," the minutes stated, but also saw "continued slack in labor markets."
With inflation and inflation expectations stable, "directors recommended that the current primary rate be maintained."
reuters.com
Directors of the Dallas, Kansas City and Philadelphia Feds asked that the discount rate be raised by 25 basis points, to 1.0 percent, to reflect what they saw as improvement in the U.S. economy.
The heads of those three banks are among the more hawkish on inflation at the U.S. central bank, and have pushed the Fed to increase interest rates more aggressively.
The discount rate is what the Fed charges banks who turn to it for funds when they are unable to raise them in the private market.
The fed funds rate, which has been near zero since 2008, governs the cost of overnight borrowing between banks and is the Fed's main monetary policy lever.
The other nine Fed regional bank heads agreed to keep the discount rate at its current 0.75 percent.
"Federal Reserve Bank directors generally anticipated continued moderate economic growth," the minutes stated, but also saw "continued slack in labor markets."
With inflation and inflation expectations stable, "directors recommended that the current primary rate be maintained."
reuters.com
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