MNI BRIEF: Three Fed Banks Wanted Smaller Discount Rate Hike
The boards of directors of the Federal Reserve banks of Kansas City, New York and Philadelphia last month voted in favor of a smaller 50 basis point hike in the discount rate charged to banks for emergency loans, according to the latest discount rate meeting minutes published Tuesday.
Directors of the remaining nine Fed banks, in contrast, wanted a 75 bp hike in the discount rate at meetings held October 20 and 27. At the November 2 meeting, there was consensus for a 75-basis-point increase, and the Board approved an increase in the primary credit rate from 3.25% to 4%. The FOMC hiked the fed funds rate range by 75 bps for a fourth meeting in a row in November to 3.75% to 4%.