(Reuters) – The boards of the Federal Reserve Bank of Minneapolis and St. Louis voted in mid-July to raise the emergency lending rate for commercial banks by a percentage point, minutes of discounted interest rate meetings showed on Tuesday.
Kansas City Fed board directors voted for a 0.5 percentage point rate hike, minutes of the meeting showed.
When Fed policymakers choose 75-benchmark at their July 26-27 policy meeting The policy rate was raised by a basis point. The Fed’s nine other regional bank boards have already supported raising the discount rate by 75 basis points.
Disagreement among Fed banks on appropriate setting of discount rate Discount rate — different from, but moving in synchrony with, the rate set by the Fed’s policy-setting FOMC — suggests that in the face of There is growing disagreement over what aggressive action the U.S. central bank should take amid decades of high inflation.
Fed bank directors are not policy makers, and their votes on discount rate setting do not determine the Fed’s benchmark rate. They do, however, meet regularly with their respective Fed bank presidents, who, along with Fed Chairman Jerome Powell and the Fed’s board of directors, make actual policy rate decisions.
Still, Fed chairs say their board’s views help shape their own outlook.
Minneapolis Fed President Neil Kashkari and St. Louis Fed President James Bullard are two of the most hawkish Fed Rate setters https://graphics.reuters.com/USA-ECONOMY/FED/lgpdwawwzvo/, they all drove more substantial growth than most of their colleagues.
Kansas City Fed President Esther George, who chaired the key annual meeting of global central bankers later this week in Jackson Hole, Wyoming, opposed the Fed for the first time in June 75 a basis point hike, saying she thought half a point would be more appropriate. In July, she joined other policymakers in unanimously deciding on a second 75 base point increase.