MNI BRIEF: Two Fed Banks Wanted July Discount Hold - Minutes

Directors of the Federal Reserve Banks of New York and Atlanta voted to hold the discount rate steady ahead of the July FOMC meeting, according to minutes from the discussions, while the remaining ten regional banks sought to raise the rate 25 basis points to 5.5%.

The Fed's board of governors and the FOMC voted unanimously to raise the rate to 5.5%, the minutes said. Fed bank directors generally provided mixed reports on economic activity across sectors and districts.

"Many directors commented on labor market conditions, with some noting slowing wage growth, though hiring challenges and wage pressures persisted for healthcare, technology, and certain other types of workers. Many directors also acknowledged risks from potential labor strikes," the minutes said. "Overall, directors remained cautious about the outlook, with many noting continued elevated inflation and increased uncertainty."