Some Fed banks sought discount-rate hike in April

Discussion in 'Economics' started by ASusilovic, May 25, 2010.

  1. WASHINGTON (MarketWatch) -- Three Federal Reserve district banks voted in April to increase the Federal Reserve's discount rate, but the move was not supported by the majority of banks or the Fed's board of governors in Washington, according to minutes of the Fed's discount rate deliberations released Tuesday.

    The discount rate, now at 0.75%, is the rate charged by Fed banks to institutions seeking emergency funding.

    According to the Fed, the three district banks -- Dallas, Kansas City and St. Louis -- wanted to raise the discount rate by a quarter-percentage point to 1% in April. They saw the move as another step toward restoring the "precrisis discount-rate structure."