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MNI BRIEF: One Fed Bank Wanted Sept Discount Hike - Minutes


Directors of the Federal Reserve Banks of Cleveland voted to raise the discount rate ahead of the September FOMC meeting to 5.75%, according to minutes from the discussions, while the remaining eleven regional banks sought to hold the rate steady at 5.5%.

"No sentiment was expressed" by the Fed Board for changing the primary credit rate and the Board approved keeping the rate at 5.5%. Fed bank directors generally reported moderating or steady economic activity in September, with many noting resiliency in consumer spending and some improvement in supply chains.

"Many directors commented on the increased availability of labor and easing wage growth. However, hiring challenges and wage pressures persisted for healthcare and certain other types of workers," the minutes said. "Several directors cited continued tightening in credit conditions. Some directors noted signs of household financial stress or concerns about the potential impact of tighter financial conditions on low- and moderate-income consumers." (See MNI INTERVIEW: Labor Hoarding Improves Odds Of US Soft Landing)

MNI Washington Bureau | +1 202-371-2121 |
MNI Washington Bureau | +1 202-371-2121 |

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