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Two Regional Feds Voted For 100bp Discount Rate Hike

FED
  • Minutes of the discount-rate meetings in July show directors at two regional Federal Reserve banks (St Louis and Minneapolis Fed) favored a 100bp July rate hike in the discount rate to further tighten the cost of borrowing for banks from the discount window, whilst directors at the Kansas City Fed favored a 50bp increase.
  • This pushed the discount rate to 2.5%, in line with the 75bp hike in the Fed Funds range to 2.25-2.5% on Jul 27.

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