Central Banks
St. Louis, Minneapolis Feds Backed Full-Point Discount Rate Hike
- Nine regional banks favored 75 basis points by July 27
- Kansas City Fed directors sought a 50 basis-point July hike
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Directors at two of the Federal Reserve’s 12 regional branches favored a 100 basis-point increase in the discount rate in July, signaling internal pressure for a bigger move than policy makers delivered last month.
The boards of the St. Louis and Minneapolis banks voted July 14 for a 100 basis-point discount rate rise, according to minutes of discount-rate meetings released by the Fed on Tuesday. A day before their votes, a report showed the US inflation rate jumped to a fresh four-decade high in June.