Tags: federal reserve interest rate | inflation | 1%

Two Fed Banks Wanted Giant 1% Rate Rise in July

Two Fed Banks Wanted Giant 1% Rate Rise in July
(Dreamstime)

Tuesday, 23 August 2022 01:34 PM EDT

The boards of directors of the Minneapolis and St. Louis Federal Reserve banks voted in mid-July for a full-percentage-point increase in the rate charged to commercial banks for emergency loans, minutes of their discount rate meetings showed on Tuesday.

Directors on the Kansas City Fed's board voted for a half-percentage-point rate increase, the meeting showed.

The recommendations from all three banks were overruled when Fed policymakers at their July 26-27 policy meeting opted for a 75-basis-point increase to the benchmark policy rate. The Fed's nine other regional bank boards had already backed a 75-basis-point increase in the discount rate.

The split among the Fed banks over the proper setting of the discount rate - which is different from but moves in tandem with the rate set by the Fed's policy-setting Federal Open Market Committee - suggests increasing discord over how steep the U.S. central bank's rate path should ultimately be.

© 2026 Thomson/Reuters. All rights reserved.


StreetTalk
The boards of directors of the Minneapolis and St. Louis Federal Reserve banks voted in mid-July for a full-percentage-point increase in the rate charged to commercial banks for emergency loans, minutes of their discount rate meetings showed on Tuesday.
federal reserve interest rate, inflation, 1%
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2022-34-23
Tuesday, 23 August 2022 01:34 PM
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