Directors at three of the Federal Reserve’s 12 regional banks sought a half percentage-point increase in the discount rate last month while the other outposts favored the quarter-point moved that was delivered.
(Bloomberg) — Directors at three of the Federal Reserve’s 12 regional banks sought a half percentage-point increase in the discount rate last month while the other outposts favored the quarter-point moved that was delivered.
Minutes of discount-rate meetings from Feb. 21 through March 22 released by the Fed Tuesday showed that directors at the Minneapolis, St. Louis and Cleveland Fed boards wanted the bigger increase.
Fed policymakers voted unanimously to raise their benchmark policy rate by 25 basis points on March 22 to a target range of 4.75% to 5%. The Fed raised the discount rate, which governs the cost of borrowing by banks at its backstop discount window, by the same amount to 5%.
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