WASHINGTON (Reuters) – Two of the Federal Reserve’s 12 regional banks supported raising the discount rate ahead of the central bank’s May meeting, according to minutes of the discount rate discussions released on Tuesday.
The Fed did not raise rates in May, and the fact that only two regional banks were pushing to raise the discount rate – charged on emergency loans to banks – shows the scant support for a rate hike as of late April.
The discount rate moves in step with the lower federal funds rate that the central bank sets as its policy target. The request from the Kansas City and Richmond regional banks reflected their sense that rates should be moving higher more quickly.
The Fed is expected to raise rates when it meets on June 13-14.
(Reporting by Howard Schneider; Editing by Andrea Ricci)