MNI BRIEF: Three Fed Banks Wanted Discount Rate Hike--Minutes

The directors of the Federal Reserve Banks of Cleveland, St. Louis and Kansas City voted to raise the discount rate by 25bps in the period ahead of the January FOMC, according to minutes from meetings of the regional Bank boards, a shift from the previous intermeeting period of unanimous consent for keeping the rate steady.

The Fed's board of governors sided with the majority, keeping the rate steady at 0.25%, and expressed "no sentiment" for changing the rate at the time, the minutes said.

“Given ongoing inflation pressures and strong labor market conditions, a number of directors noted that it might soon become appropriate to begin a process of removing policy accommodation.,” the minutes said. “Inflation remained elevated, and some directors noted uncertainty and upside risks in connection with the inflation outlook.”