MNI BRIEF: Four Fed Banks Wanted June Discount Hike - Minutes

Directors of the Federal Reserve Banks of Cleveland, Richmond, St. Louis, and Dallas voted to raise the discount rate 25bps ahead of the June FOMC meeting, according to minutes from the discussions, while the remaining eight regional banks sought to keep the rate at 5.25%.

The Fed's board of governors and the FOMC sided with the majority, the minutes said, pausing the rate at 5.25%. Fed bank directors reported mixed economic activity across sectors and districts.

"Most directors reported further tightening in credit conditions, and some noted increased competition for deposits at banks and increased higher education enrollment," the minutes said. "Directors remained cautious about the outlook, with many noting continued elevated inflation and increased uncertainty."