MNI BRIEF: Fed Banks Undivided In Nov Discount Pause - Minutes
No directors of Federal Reserve Banks voted to raise the discount rate ahead of the November FOMC meeting where the primary credit rate was set at the existing level of 5.5%, according to minutes from the discussions.
The directors of the Federal Reserve Banks of New York, Cleveland, Richmond, Atlanta, Chicago, and Dallas had voted on October 26 to establish the primary credit rate at the existing level and no sentiment was expressed by the Board for changing the primary credit rate, the minutes said, the first time all have agreed to pause in this cycle. Federal Reserve Bank directors generally reported strong or steady economic activity.
"Many directors noted strength in overall consumer spending. Labor market conditions continued to improve, with some directors citing increased labor availability and easing wage growth; still, several directors also noted persistent hiring challenges and wage pressures," the minutes said. "In most Districts, credit conditions remained tight. Many directors noted slowdowns in residential or commercial real estate activity."