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MNI BRIEF: Three Fed Banks Recommended 50BP Hike Before Feb

(MNI) WASHINGTON

The board of directors of the Federal Reserve banks of Cleveland, St. Louis and Minneapolis voted in favor of a larger 50 basis point hike in the discount rate charged to banks for emergency loans before the February FOMC meeting, according to the latest discount rate meeting minutes published Tuesday.

Directors of the Atlanta and Dallas Fed banks, in contrast, supported maintaining rates at 4.5%. Fed bank directors in Boston, New York, Kansas City, San Francisco, Philadelphia, Richmond, and Chicago voted for a 25 basis point increase to 4.75%. The FOMC hiked interest rates by 25bps to a range of 4.5% to 4.75% in February.

"Overall, Federal Reserve Bank directors reported that economic activity remained steady in their Districts yet was uneven across sectors," the minutes said. "Directors were generally cautious or concerned about a weaker outlook for the economy, and some directors expected the inflation rate, which remained elevated, to slowly moderate in 2023."

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com

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